The Canadian dollar was also among the currencies that managed to withstand depreciation due to the strengthening of the US dollar earlier in the week.
The US dollar remained strong following an increase in US bond yields and expectations for a rapid recovery of the US economy were supported by the good development of Joe Biden’s stimulus package.
The Canadian dollar traded steady supported by concerns over the issue of attacks on Saudi Arabian oil ports on Sunday.
Saudi Arabia’s Ministry of Energy confirmed a drone from the sea has surrendered the port of Ras Tanura. But the attack was successfully intercepted.
Although the attack was successfully repulsed and port facilities were reportedly unaffected, crude oil prices have exhibited a surge while supporting the appreciation of the Canadian dollar.
As a result, it can be seen that the price movement on the chart of the USD/CAD currency pair failed to continue to rise higher even though the US dollar remained strong.
The price was blocked at the resistance zone of 1.27000 before the decline was exhibited in the New York session yesterday to the level around 1.26400.
Continuing on Tuesday, prices remained flat with crude oil prices seen supporting Canadian dollar trading offsetting the strengthening US dollar.
The price moves below the level of 1.26700 and the resistance level of Moving Average 50 (MA50) on the 1 hour time frame of the price movement.
Investors will be wary of Canadian dollar trading ahead of the Canadian jobs data report over the weekend as oil market developments remain monitored.
If the price makes a decline, the price support levels are seen at 1.26300 and 1.26000. The decline will give an early signal for the beginning of a bearish trend on the USD/CAD chart.
If the price makes a rise past the resistance zone of 1.27000, the high level at 1.27800 is seen as the next price focus destination.
