The price chart of the USD/CAD currency pair surprised investors on Tuesday's trading yesterday when it displayed aggressive movements in the European session through to the New York session.
The US dollar showed strengthening in the European session but failed to maintain the positive pace when it returned to trade lower in the following session.
While the Canadian dollar took the opportunity to reap the gains in the New York session yesterday when the US dollar was weakening.
Canada's monthly economic growth reading for November last year remained unchanged as expected at 0.1%.
The rise in crude oil prices is also seen as an additional factor supporting the strengthening of the Loonie currency yesterday.
The price initially rose to a high of 1.34700 and then plunged 170 pips to reach the 1.3300 level.
The 1.33000 level remains a support for the price which also saw the price bounce up from that level at the opening of trading earlier this week.
However, investors are alert for a bearish signal of price moving back below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the USD/CAD chart.
If the 1.33000 support zone is finally breached, the price will fall lower to record the latest 11-week low.
Continuing the bearish trend, expect the price to go to the lower support zone which is at 1.32000.
On the other hand, if the price makes a rebound from the 1.33000 support, the price is likely to break through some important barriers.
After breaking through the MA50 barrier to signal a trend change, the price will next cross the 1.34000 level before heading to the 1.35000 resistance zone.
