The US dollar maintained a positive performance in the market in early trading of the week after being supported by the US NFP employment data report published last weekend with encouraging readings.
Although the US dollar moved strong against most other major currencies, the Canadian dollar managed to show its strength against the king of the currency.
Observing the price movement on the chart of the USD/CAD currency pair, the price started to make a decline again in the New York session yesterday.
The strengthening of the Canadian dollar was driven by factors of rising crude oil prices following the positive outlook on fuel demand by major consumer countries.
The price plunged back after hovering at the resistance zone of 1.25800 hitting the level around 1.25200 at the end of the New York session.
The decline below the Moving Average 50 (MA50) support level on the 1 -hour time frame of the price movement has also returned to give a bearish signal.
Investors are now cautiously awaiting the release of US inflation data in the New York session today to assess whether the US dollar is able to strengthen against the Canadian dollar again.
If the price goes up, the price will return to the resistance zone 1.25800-1.26000 after the zone also failed to break in the end-July trade.
But if the price continues lower today, the level around 1.24800 which was last week's support level will be tested again.
The lower decline will lead to the 1.24300 support zone which was hit by the price at the end of last July before the price shows a rise again.
