The Canadian dollar was among the most traded currencies at risk in the market this week with key factors influenced by the Canadian central bank meeting as well as the crude oil market.
The Bank of Canada (BOC) yesterday maintained its interest rate at 0.25% at the latest meeting as expected with the quantitative easing maintained at C $ 4 billion per week.
According to the central bank, economic momentum heading into the fourth quarter looks better than expected in October.
Meanwhile, the crude oil market was the focus of the market on Wednesday after two oil wells in Kirkuk province in northern Iraq were bombed and caused a major fire.
Rising oil prices due to risks to supply instead fell back following a shock on a published US crude oil inventory report recording the biggest surge since April.
This situation has affected the movement of the Canadian dollar as examined on the price chart of the USD / CAD currency pair.
During the week, the price is still trading flat above the support level of 1.27800.
On Wednesday's trading, the price was seen to test the support level again before the price rises again to this week's resistance level at 1.28300.
However, prices are seen moving back and forth in today's Asian session hovering around the Moving Average 50 (MA50) level in the 1 hour time frame of price movement.
If the price manages to continue lowering below the support of 1.27800, the next bearish destination is seen heading towards the level of around 1.26700.
On the other hand, if the price rises again, the level of 1.29000 becomes the focus for the price to test the SBR zone (support become resistance).
