The Canadian dollar managed to maintain the strengthening it did in the middle of the week until the end of the week taking advantage of the gloomy movement of the US dollar due to investor caution ahead of the Jackson Hole symposium.
Supporting the trading of the dollar Loonie, crude oil prices are still maintaining the consolidation made this week due to the prospect of production cuts by OPEC.
Additionally, the latest US crude oil supply report shows high demand in the world's giant economy.
Meanwhile, the focus in the New York session yesterday was on the publication of the gross domestic product (GDP) data of the United States (US) which showed the second estimate by registering a contraction of 0.6% compared to 0.9% which was recorded slightly better than the initial reading published last month.
The speech by the Chairman of the Federal Reserve (Fed) Jerome Powell at the Jackson Hole Symposium event that will start today (Friday) for 2 days will certainly have an impact on price movements on the main charts.
In addition, investors are also looking forward to the release of US personal consumer expenditure (PCE) data which will be used as a measure of inflation by the Federal Reserve (Fed) for determining their monetary policy.
Assessing the price movement on the chart of the USD/CAD pair, the price has managed to show a decline for 2 consecutive days with a weekly decline of around 170 pips recorded from the high level at the beginning of the week around 1.30600 up to the level of 1.29000 which was reached yesterday.
After the price reached the level of 1.29000 in the European session yesterday, investors have witnessed a price rebound in the RBS (resistance become support) zone with investors assessing the release of US economic data yesterday.
Despite the rebound, the price is still seen to be playing below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the USD/CAD chart until the end of the New York trading session, indicating a still bearish trend movement.
Continued trading today (Friday) is seen to be testing the MA50 resistance in the European session, but does not show the momentum to pass it and there is a possibility that the price may decline again in the next session.
If the price continues to decline, the RBS 1.29000 zone will be tested again, and if it is successfully broken through, the price will continue the bearish trend until this week's trading ends.
A further drop in price is expected to reach the 1.28300 zone before a lower drop will reach the 1.27500 support zone to record the latest 2-week low.
On the other hand, if the price exhibits a surge and breaks through the MA50 price barrier, the resistance at 1.30000 is seen as a focus to be tested after giving an early signal for a bullish trend change.
Further moves higher will aim to challenge the highs at the start of the week before reaching the 1.30000 resistance zone with a fresh 6-week high.
