Canadian inflation data published in the New York session yesterday recorded a slightly lower -than -expected reading of the figure for June.
Nevertheless, the Canadian dollar remained strong, especially against the US dollar, which was also supported by global crude oil market sentiment.
Oil prices are projected to move steady after U.S. oil inventory data recorded a fall signaling rising fuel demand.
On the price chart of the USD/CAD pair, it can be seen that the price increase was blocked at the resistance level of 1.26000 after being tested several times this week, including in the New York session yesterday.
Failing to pass to higher levels, the price has plummeted up to the level of 1.25200 until trading towards the end of the session.
Continuing the Asian session this morning (Thursday), the price flattened at the level of 1.25200 before continuing lower to the level of 1.24800 entering the early trading of the European session.
With the US dollar depreciating factor after the FOMC meeting earlier this morning and the positive aspects of the Loonie dollar movement, prices are expected to continue to make lower declines before this week’s trading ends.
The support level at 1.24000 will be the latest focus to be tested as well as recording the lowest price level for a period of 3 weeks.
Even so, investors cannot ignore the possibility for prices to make a rebound if market sentiment changes.
For a bullish situation, the resistance level of 1.26000 will continue to be tested and if the price manages to break it, the next price focus level is seen at around 1.26700.
Later, the higher bullish target will return to the 1.27800 resistance zone reached at the beginning of last week.
