Commodity currencies traded affected until the end of October including the Canadian dollar affected by the global crude oil market downturn.
Following the spread of the Coronavirus pandemic which has now seen a significant increase in cases of infection in major economies, fuel demand expectations have also declined.
Crude oil, Canada's largest export source, has depreciated against the Canadian dollar with reports of falling oil prices to a 4-month low.
The market will look forward to the next action of the petroleum exporting countries (OPEC) in controlling the balance of the crude oil market.
Meanwhile, on this week's trading, investors have seen a significant increase in the price of the USD / CAD currency pair following the Loonie depreciation while the greenback dollar strengthened again.
After the price jumped 150 pips on Wednesday, the rise continued again on Thursday trading around 110 pips reaching the high of 1.33900 in the resistance zone.
However, the price declined from that high level until trading continued into the Asian session this morning testing the level of 1.33000 as well as the support level of Moving Average 50 (MA50) in the 1 hour time frame.
Prices began to show a resurgence until trading continued into the European session this afternoon with the expected high level of 1.33900 reached yesterday again being targeted.
A higher rise above that level will lead to a higher resistance level around 1.34600 which was tested at the end of last August before the price moves below that level for a period of 3 months.
If the price returns below the MA50 support level, investors will again expect the beginning of a bearish trend on the USD / CAD chart.
RBS zone (resistance become support) 1.32000 will return to the price focus on the next decline.
Canadian GDP growth data will be the focus of the New York session shortly which will affect the movement of the Canadian dollar.
