The Canadian dollar is at risk of experiencing further declines after the price of crude oil, Canada’s main export, fell after soaring U.S. crude oil inventory data.
A different -than -expected increase in the decline is seen to drive weak demand for global crude oil.
After the US dollar strengthened in the New York session following the positive reaction of investors to the minutes of the FOMC meeting published, the king of the currency again moved weak again until the European session today.
On the price chart of the USD/CAD pair, the price has exhibited 2 consecutive days of gains from the support level of 1.25000.
Beyond the Moving Average 50 (MA50) support level on the 1 -hour time frame of the price movement on the USD/CAD chart, the bullish trend signal has pushed the price to continue rising up to the resistance zone of 1.26300 yesterday.
But in today's trading (Thursday), the price moved downwards again until the beginning of the European session to test the MA50 support level after the price dropped below the 1.26000 level.
Investors are also wary of Canadian dollar trading ahead of a Canadian jobs data report on Friday that will be a focus for the central bank.
If the price resumes its rise past the resistance of 1.36300, the price will post its latest 4 -week high possibly heading to the level around 1.26700.
However, if the price continues to make lower declines, the 1.25000 support zone will return to the focus of the price again.
If the decline continues, investors will pay attention to the price reaction at the level around 1.24800-1.24700 which is the RBS (resistance become support) zone before.
