The rise in the USD / CAD currency pair chart earlier this week failed to reach the target zone of 1.28300 which was the resistance level tested last week.
On the other hand, the rising price almost touched the 1.28000 level again showing a reversal in the New York session yesterday following the depreciation of the US dollar in the market.
The situation remains on continued trading in the Asian session this morning by giving an early signal of a change in the price trend.
Meanwhile, the Canadian dollar was seen to be backed by investor optimism over China's crude oil demand as one of the world's largest consumer of oil.
In addition, China's rising industrial production data indicates a recovery in China's economic sector which will continue to support global oil market sentiment.
Prices that continued to decline in the Asian session today also fell lower below the Moving Average 50 (MA50) support level on the 1-hour price movement.
A lower price drop is expected to move to the support zone around 1.26700 to prevent a lower price fall.
If the price continues to decline, the support zone at 1.26300 will be tested before the lower downtrend leads to the 1.26000 concentration level.
On the other hand, if the price soars above the resistance zone of 1.27800, last week's resistance level at 1.28300 will return to the target price target.
