Investors are monitoring the movement of the Canadian dollar in the market at the end of January after the reaction of the Canadian central bank meeting last week.
The Bank of Canada (BOC) has raised interest rates by 25 basis points, indicating a further slowing of tightening and the central bank has also signaled a pause in interest rate hikes after this.
The Loonie eased after Wednesday's meeting results, but returned to trading well at the close at the end of the week.
Following the opening of the market earlier this week, the price of crude oil traded higher and is likely to support the increase in the value of the US dollar.
But investors remain cautious ahead of the OPEC meeting that will take place on Wednesday which could have an impact on the global crude oil market.
Also in focus this week is the FOMC meeting and also the United States (US) NFP employment data report which will affect the US dollar currency.
Examining the price action of the USD/CAD currency pair chart, the surge in prices during last week's BOC meeting saw gains blocked at the 1.34000 resistance zone.
However, the US dollar that failed to strengthen pulled the price back down below the Moving Average 50 (MA50) barrier level on the movement in the 1-hour time frame of the USD/CAD chart again triggering a bearish signal.
The decline occurred again below the 1.34000 zone until it reached the support level of 1.33000 at the end of the last session last week.
Opening the trade earlier this week around 1.33000, the price rose slightly but remained moving below the MA50 barrier level in the Asian session.
The downward trend will continue if the price drops past the support level of 1.33000 to continue the bearish trend.
A further drop in price could reach up to around 1.32000 to record a recent 4-month low.
On the other hand if the price manages to bounce back this week, the rise is seen to retest the resistance at the 1.34000 zone.
And the continued increase will reach the concentration zone at 1.35000 before after the trend change indication.
