The strengthening of the Canadian dollar in Thursday's trading did not last long as the commodity currency returned to a bearish move.
Initially, the Canadian dollar was supported by hopes of an Organization of the Petroleum Exporting Countries (OPEC) meeting with its partner, OPEC+ to extend crude oil production cuts to support price stability.
On the price chart of the USD/CAD pair yesterday, the price again made a decline from the high of 1.26700 at the beginning of the Asian session to passing the support level of 1.26000 until the beginning of the New York session.
However, the re -strengthening of the US dollar in the New York session pushed the price back to the level of 1.26900 with over 100 pips daily increase.
The price starts moving above the support level of Moving Average 50 (MA5) on the 1 hour movement of the price which is likely to give an early signal of a bullish trend.
The strengthening US dollar outperformed the Canadian dollar despite being supported by positive crude oil market sentiment.
The Asian session on Friday saw the price decline slightly from the highs reached in the previous session to the Moving Average 50 (MA50) support level.
The price is expected to continue rising to higher levels heading to the resistance zone at 1.27800.
But the rise or fall of prices will depend on the market’s reaction to the US NFP jobs data report in the New York session soon.
If the price makes a decline, the support level of 1.26000 will be tested before the price continues to decline can reach up to the support zone of 1.24700.
