Commodity currencies showed a positive performance earlier this week with the Canadian dollar seen further strengthening supported also by oil market sentiment.
Oil prices are seen continuing to rise in the affected situation in Texas as the largest oil production site in the United States (US) with power outages until President Joe Biden declared a state of emergency.
Previously, oil prices have soared again due to rising tensions in the Middle East.
Saudi Arabia reportedly destroyed a drone full of explosives believed to have been launched by Iranian Houthi groups.
In addition, hopes for a world economic recovery with the intensified distribution of vaccines are expected to restore demand for fuel.
Observed the price movement on the USD / CAD currency pair chart, last weekend saw a bullish test of the SBR zone (support become resistance) below 1.27800 before reversing the close of the 1.26700 support zone.
Continuing trading earlier this week, the price has dropped below the 1.26700 level with trading in the Asian session seeing the price hit around 1.26100 to record the latest 4-week low.
The continued decline in the price will test the support level at 1.26000 before the price continues to fall lower towards the level of 1.25200 which is the price support level in April 2018 trading.
If the price returns to the upside, the 1.26700 level will return to the focus for the price testing the SBR zone.
And the increase that passes the zone will continue to rise towards the SBR zone 1.27800 with the expectation of a change in the bullish price trend.
