While the focus was on the decline of the Euro after the outcome of the European central bank meeting yesterday, investors were also drawn to the movement of the Canadian dollar which exhibited a depreciation towards the end of the week.
The factor seen to influence the depreciation of the Canadian dollar was the market’s reaction to a slight re -decline in global crude oil prices driven by the easing of sanctions measures in Shanghai. However, oil prices are still seen at a three -month high.
In addition, investors are also seen to be increasingly wary of Canadian dollar trading ahead of the release of the Canadian employment data report in the New York session soon.
The price movement on the chart of the USD/CAD currency pair on Thursday yesterday invited attraction to investors with a significant price spike displayed.
Although the US dollar moved relatively flat with mixed market sentiment over the weekend, prices managed to soar higher following the decline in the value of the Loonie.
A daily jump of around 150 pips was recorded yesterday after the price moved flat since the beginning of this week and was seen ending the bearish pattern of the price last week.
Early signals were evaluated by investors after the price movement had initially passed the Moving Average 50 (MA50) barrier on the 1 -hour time frame in the Asian session yesterday.
Then the price increase has managed to break the resistance in the SBR zone (support become resistance) 1.26000 to reach a high of around 1.27000 at the end of the New York session.
The price movement, however, was seen flat at that high in trading that continued in the Asian session this morning (Friday).
The price increase if continued is seen to test the zone around 1.27500 before continuing the rise to the next focus zone at the target height of 1.29000.
On the other hand if the price plummets again, the 1.26000 zone will return to the focus to be tested after the price managed to break it yesterday.
If the price continues to decline below that zone, the price support level is seen at 1.25000 for the price to record the latest 7 -week low.
The Canadian employment data report as well as the US inflation data will be the focus tonight and will influence the price movement at the close of trading this week.
