The Canadian dollar performed well on Tuesday following support from crude oil market sentiment in which black gold was Canada's main export.
Although the US dollar managed to strengthen against other major currencies, it failed to maintain its strength against the Canadian dollar.
After US crude oil inventory data recorded a fall, oil prices were seen to soar to a 1-year high.
On the price chart for the USD / CAD currency pair yesterday, the price in the Asian session was seen moving down to the level of 1.27800 before rebounding from the RBS zone (resistance become support).
The price rise re-tested the resistance zone 1.28700 which was also tested at the end of last week's trade.
However, the price slipped below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement which is likely to signal a bearish trend on the USD / CAD chart.
Slow price movements in today's Asian session (Wednesday) hovered around the RBS 1.27800 zone.
If the price continues to decline below the zone, the price support level is seen at 1.26700 during the end of January trading.
However, if the price returns to the rise, the MA50 barrier will be tested before the price tests the resistance zone of 1.28700 before heading to the high level of 1.29000.
Investors will also be wary of Loonie trading ahead of the Canadian employment data report on Friday which will be published alongside the US NFP employment report.
