The Canadian dollar posted the worst performance among major currencies this week as markets continued to trade in volatility and risk.
The main factor driving the Loonie's fall is the decline in global crude oil prices, which saw WTI oil nearly hit $83 while Brent oil reached $85.3.
But there was little relief for the global oil market when it was reported that the petroleum exporting group (OPEC+) will maintain production cuts to control supply to balance the demand side of the commodity.
Investors will also be cautiously awaiting the release of Canada's employment data report on Friday which will be published alongside the United States (US) NFP employment data.
Examining the price movement on the chart of the USD/CAD currency pair, the price has reached a 7-month high after the rise continued into yesterday's New York session.
If you look at the movement from the beginning of the week, the price has made an increase from around 1.35700 up to the level of 1.37000 before the price leveled off for a while around that area.
The jump continued yesterday reaching 1.37800 before retreating back down to resume trading today (Thursday).
The 1.37000 level is a support for the price in addition to the price also testing the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the USD/CAD chart which can signal further movement.
If the price continues to surge higher, the resistance at 1.38000 is seen to be tested.
Prices will also continue to record recent highs if the Canadian dollar continues to trade weakly against the US dollar.
On the other hand, if the strength of the two currencies changes, the price will experience a further decline likely to be driven by the results of their respective employment data.
A break below the 1.37000 level would expect a further decline to test around 1.36500 before heading towards the early week focus at 1.35700.
