Several factors are now seen as a barrier to further price increases on the USD/CAD currency pair chart.
Let's examine what factors are influencing the movement of both the Canadian dollar and the US dollar.
First, the market sentiment is seen to be clarified with increasingly positive developments in China as the second largest economy in the world following important economic sector data published in the Asian session yesterday, recording excellent readings.
This has had an effect on the depreciation of the US dollar currency as a safe-haven currency during the risk-on market situation.
In addition, expectations for the opening of China's economy also expect an increase in demand for crude oil due to China being one of the world's largest oil consumers.
Therefore, this also has the effect of increasing the value of the Canadian dollar due to crude oil being the country's main export.
Therefore, the bullish momentum on the USD/CAD chart previously began to stall with the 1.36600 resistance zone becoming an obstacle for the rise to continue higher.
However, the price movement since last week is seen to be still above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the USD/CAD chart until trading resumes today (Thursday).
Due to the current situation signaling a weak greenback and a positive Loonie, prices look more likely to display a bearish pattern again towards the end of the week.
The drop in price is seen to test the concentration zone at 1.35000 and if it breaks through lower, the price will stop hovering around 1.34000.
However, if the price regains momentum to resume its rise, the 1.36600 resistance zone will continue to be tested to be broken.
After it is broken, then the bullish movement will continue again with the price target to reach the latest high at 1.38000.
