In addition to risky sentiment factors, the Canadian dollar traded lower earlier this week influenced by a declining crude oil market in which black gold became Canada's main source of exports.
Factors driving the fall in oil prices are due to the emergence of a new variant of Coronavirus that will hamper economic recovery in major countries.
This is seen to have an impact on oil demand which will decline due to the main country's economy which has not yet fully recovered and thus limit the use of crude oil.
Thus, investors have seen the price on the USD / CAD currency pair chart jump to 170 pips on Monday.
The strengthening factor of the US dollar also supported the price jump up to the level of 1.29500 before the depreciation of the US dollar in the New York session saw the price make a return to the RBS zone (resistance become support) 1.28300.
Trading on Tuesday yesterday also saw the price rise again above the 1.29000 level before the price continues in today's Asian session again moving below that level.
Price movements above the Moving Average 50 (MA50) support level over the 1 hour time frame will continue to signal a bullish trend on the USD / CAD chart.
The continued price increase will see the price reach a level of up to 1.3000 for the price to test the resistance zone.
However, if the price plummets lower, among the expected levels of focus is the price at the RBS zone 1.28300 and the RBS zone 1.27800.
