So far this week alone, the price on the USD/CAD currency pair chart has jumped around 250 pips to hit the latest 7 -week high.
The main factor driving more significant price increases this week was the follow -up to the results of the FOMC meeting which has re -strengthened US dollar trading in the market.
In addition, the performance of the Canadian dollar was seen to be somewhat depressed due to the worrying sentiment of the crude oil market.
Investors scrutinized the latest report on talks between Tehran and Washington to revive the 2015 Nuclear deal that added to negative sentiment towards the oil market.
With the uncertainty in the global crude oil market has seen prices on the USD/CAD chart exhibit a clearer bullish trend until the end of this week.
Supported at the support level of 1.21300 which is the lowest level this week, the price has surged to the level of 1.22700 during the market reaction to the FOMC meeting.
Continuing trading on Thursday yesterday, the price has climbed higher reaching a high of around 1.23700 to record a daily gain of 100 pips.
Until the continuation of today's European session trading, the price is still testing the level with the level of 1.24000 seen as a resistance zone that needs to be tested by the price.
Passing that zone will push a higher rise to the SBR (support become resistance) zone at 1.24700-1.25200.
If the price makes a decline, the level of 1.22700 is seen as a price support zone to continue the rise again.
A continued lower decline will return around the 1.21800 level and it is likely that investors have gotten a signal for a bearish trend change.
