The Canadian dollar is showing further strengthening following the recovery in Commodity trading which is the mainstay of Canada's major exports, namely crude oil.
Crude oil prices once again showed a follow-up rise in the U.S. oil inventory released on Wednesday with a figure reading declining to 2 million barrels.
This will increase the demand for oil in the market in addition to economic recovery factors that also increase investor confidence towards weekend trading.
Thus, it can be seen that the price movement for the Canadian dollar is stronger than the US dollar on the USD / CAD pair chart.
In yesterday's trading, the price once again tested the resistance level around 1.34200 which has been tested since last week but still failed to pass it.
The price reversed a reversal and a break above the Moving Average 50 (MA50) support level within the 1 hour time frame of the price movement has given investors early indications for a bearish trend change on the USD / CAD chart.
The daily decline was recorded around 120 pips reaching the level of 1.33000 which was the support zone for previous trades.
The sharp decline was also supported by the depreciation of the US dollar after investors' confidence in the development of negotiations on the US stimulus package.
Continuing trading in today's Asian session, the price continues to decline below the 1.30000 level and is expected to reach the RBS zone (resistance become support) 1.32400-1.32000.
If the price rises again, the SBR zone (support become resistance) 1.33000 will be re-tested and the successful price increase to a higher level will return to the resistance zone 1.34200.
