Horizontal price movements on the USD / CAD currency pair chart earlier this week after last week's price decline with the Canadian dollar trading stronger against the US dollar.
The factor that made the horizontal move was seen in the uncertainty in the US economic stimulus package as well as investors awaiting the outcome of today's Canadian central bank monetary policy meeting.
There are expectations for a hawkish policy decision after the Canadian employment data report published last Friday recorded a good reading with the unemployment rate declining.
However, the Canadian dollar will face the risk of falling crude oil prices, which are Canada's main exports following the latest report on US crude oil inventories.
The Bank of Canada (BOC) is expected to keep interest rates at 0.25% after the central bank lowered the lows in March when the Coronavirus pandemic crisis began.
If positive results are published and support the strengthening of the Loonie, the price will fall below the support of 1.27800 with the expectation of a lower decline towards the level of around 1.26700.
On the other hand, if the price jumps again, the price level is seen at 1.29000 before rising higher at 1.30000.
