The Canadian dollar performed well at the opening of trading earlier this week supported by global crude oil market sentiment.
Crude oil prices, Canada's main export, rose following reports of European sanctions on Russian crude.
While crude oil through submarine channels is not expected to be blocked, 90% of Russia’s oil imports have agreed to be blocked involving tanker shipments.
The situation that will disrupt the supply has led to an increase in oil prices in the market while supporting the strengthening of the Canadian dollar.
The price chart of the USD/CAD pair clearly displayed a bearish pattern at the beginning of the week for 3 consecutive sessions which was also driven by the still protracted depreciation factor of the US dollar.
The price movement below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame remains a bearish signal for the price.
After the decline reached the level of around 1.26500 in the New York session, the price flattened around that level until the end of the session.
Continuing on Tuesday's trading, prices remained flat in the Asian session, but investors expect the decline in prices to continue in the New York session.
The continued decline will lead to the level of 1.26000 for the price to test the support zone as well as continue to record the latest lows again for a period of 5 weeks.
A further decline in the price is seen to target the 1.25000 zone if the bearish trend of the price is maintained.
On the other hand, if the situation in the market starts to change and makes the price rebound, the resistance level of MA50 and the zone around 1.27300 will be tested before investors evaluate the indicators for a change in the price trend.
The next higher price increase will lead to the SBR (support become resistance) zone of 1.29000 which was the focus of the price before.
