Notice that the price on the chart of the USD/CAD currency pair has started to decline to its latest low after flattening for 2 weeks?
Driven by rising crude oil price factors, the Canadian dollar which is sensitive to the global oil market displayed a strengthening with signals of limited oil supply.
Concerns over supplies are still focused on the pending negotiations between the European Union (EU) and Hungary following Russia's planned oil import embargo following protests of aggression against Ukraine.
If we look at the price movement on the chart of the USD/CAD currency pair, the price has been moving horizontally since last week continuing into this week with the price support level seen at 1.27700 and the resistance at 1.29000 zone.
With the rising factor of crude oil prices supporting the Canadian dollar, the price has moved lower below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame in Thursday’s trading yesterday giving a bearish signal.
In addition, the US dollar was also still trading weak in the market following the recovery on previously risky market sentiment as well as the reading of the US economic growth data which declined yesterday.
Thus, investors will expect a lower price decline could occur over the weekend if the situation continues.
In today's trading (Friday), the price has slipped to the level of 1.27500, recording the latest 2 -week low although the momentum of the price movement shown is still slow.
A more aggressive decline of the price can be expected in the New York session and for the lower target the price is to the 1.26000 zone for the price to test the focus zone.
However, if the price manages to make a jump and passes the MA50 barrier, the resistance in the SBR zone (support become resistance) 1.29000 will be tested.
Passing the zone will be an early indication of a change in the bullish trend to continue the rise higher to the level of 1.3000.
