Recovering crude oil market sentiment has led to an increase in the trading value of the Canadian dollar in markets where black gold is Canada's main export.
Crude oil prices have risen to their highest level in more than 1 year due to expected recovery factors on fuel demand.
Against the weak US dollar, the Canadian dollar managed to show a strengthening earlier in the week as the price decline seen on the USD / CAD currency pair chart.
The price decline was actually seen earlier last weekend from the 1.28300 zone back below the 1.27800 level.
During yesterday's trading, the price hovered in the zone and after testing the 1.27800 level, the price made a lower decline closing the trade below the 1.27400 level.
Price movements below the Moving Average 50 (MA50) barrier level over the 1-hour time frame are indicative of a bearish price trend earlier this week.
Continuing Tuesday's trading, prices continued to decline lower and were seen heading into the focus zone below the 1.27000 level.
A lower drop above the price zone will push the price towards the previous focus zone of 1.26300.
However, if the price returns to the rise, the level of 1.27800 will return to the focus for the price to test the SBR zone (support become resistance).
A higher rise will see the price return to previous important levels around 1.28300 and also resistance 1.28700.
Monitor the development of the crude oil market affecting the trading of Canadian dollars this week.
