Although risky sentiment continues to weigh on the market, the USD still does not seem to be able to catch up on its strengthening pace towards the end of this week's trading session.
Meanwhile, the spike in crude oil prices that reached a deck’s annual high due to a slight fall in U.S. crude oil supplies has driven a significant strengthening of the Canadian dollar.
Investors are optimistic that the readings of the Canadian consumer price index's published CPI data will be among the factors that could drive the Bank of Canada's (BOC) decision to raise interest rates.
Judging by the USD/CAD movement chart, the price has been showing a bearish trend since the end of September as well as signaling a more robust Loonie movement against the USD.
The bearish trend can also be seen to have presented a plunge from the high level around 1.29000 reached on September 20 to the level of 1.23000 as of today's trading (Thursday).
Yet at the beginning of today’s European session, the price slightly rose again but was still hampered by the resistance level of the Moving Average 50 (MA50) on the 1 -hour time frame to maintain the bearish trend.
If the bearish trend of the price is still maintained, the price movement is likely to break the support zone of 1.23000 to head to the lower support zone at the level around 1.22000.
The decline to the 1.22000 support zone will also record the latest 4 -month lows last reached in the June trading session.
If the price manages to regain an aggressive surge momentum for the initial signal of a bullish trend change, the price is expected to retest the nearest resistance zone at 1.24000.
A higher rise will once again show the price heading to the SBR zone (support become resistance) 1.25000 and further strengthen the bullish trend that wants to be highlighted.
