The Canadian dollar is seen moving strong again in the market due to rising crude oil prices where black gold is Canada's main export.
A factor supporting the resurgence in oil prices was the US crude oil inventory report which recorded a significant drop last week.
This will lead to an increase in oil demand where the United States is one of the largest oil consumer countries in the world.
As can be seen on the USD / CAD major currency pair price chart, the price started to decline again in the New York session yesterday after the rise in the previous session tested the resistance level of 1.27800.
The decline was also driven by the depreciation of the US dollar ahead of the FOMC meeting early Thursday morning in anticipation of a looser policy by the Federal Reserve (Fed).
The price has shown around the 90 pips decline to the support zone of 1.26900 until the end of the New York trading session before the price rise is seen in the Asian session today (Wednesday).
The rise in prices however hindered the Moving Average 50 (MA50) barrier in the 1 hour time frame of price movement and showed signs to resume a decline at the beginning of the European session.
The bearish move will test the 1.26900 zone before the downtrend will reach the support level at 1.26300 or the 1.26000 level.
On the other hand, if the price manages to jump above the MA50 level, the price will test again the resistance zone of 1.27800 which has been tested for 2 days in a row.
Overcoming that resistance will push the target for further uptrend in the 1.28300 zone.
