In addition to the focus on the United States (US) economic stimulus package as well as the Brexit issue, the global crude oil market is no exception to the temptation in market volatility and affects the movement of the Canadian dollar.
Crude oil prices are moving lower following expectations of OPEC and its allies will not extend the reduction in supply production in January.
This has put pressure on the crude oil market as well as the re-transmission of the Covid-19 pandemic will affect crude oil demand after movement restrictions are increasingly being lifted in major economies.
Moreover, the United States as one of the largest consumer countries of crude oil, the slow recovery of the economy with stimulus packages is still uncertain, will affect the movement of the oil market.
The movement of the Canadian dollar which is sensitive to the movement of oil prices however is seen to be better against the US dollar due to the current market sentiment which weakened US dollar trading.
On the USD / CAD currency pair chart, the price made a decline at the end of last week after last week's biggest rise reached the high of 1.32600.
The bearish move below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement has continued at the beginning of this week's trading until the European session yesterday.
However, in the New York session there was a price increase of around 40 pips following the re-strengthening of the US dollar at the end of the session.
Continued trading today saw the price try to break the MA50 resistance level and test the key level of 1.32000.
A higher rise is seen to return to last week's high level to test the SBR (support become resistance) zone.
Next, higher ascending destinations are seen in the 1.33000-1.333000 zone tested in early October trading.
Meanwhile, if the price resumes lower, the support zone at 1.31000 will be tested again.
