The USD continued to gain a chance to strengthen as a safe-haven as concerns over the Omicron variant increasingly upset current world market sentiment.
That is, these concerns are likely to affect global oil demand, which currently continues to put pressure on the movement of the Canadian dollar to weaken again.
Investors are also expected to evaluate the statement made by Saudi Arabian Oil Minister Abdulaziz Bin Salman on oil reviews as well as the current geopolitical tensions.
The price movement on the chart of the USD/CAD pair seems to continue to show a jump of more than 100 pips in Monday's trading session, tearing the RBS (resistance become support) zone of 1.28000.
The surge has completely boosted investor confidence to see the price able to return to a 3 -month high of around 1.28500 which is also considered a resistance zone.
The confidence was further enhanced after the price movement was re -traded above the resistance level of the Moving Average 50 (MA50) in giving a picture of the bullish trend.
However, investors are also likely to make an assessment of the resistance zone 1.28500 as the zone can be taken into account often preventing the surge since the beginning of January 2021 again.
While a more aggressive surge will indirectly support the price movement to reach the latest highs that are likely to lead to the resistance zone 1.29000.
Assuming the price continues to plunge as displayed at the beginning of the European session today, the price is expected to re -test the RBS 1.28000 zone first before plunging lower.
The next decline will likely see the price movement hit the RBS 1.27000 zone which in turn will change the trend movement to re -translate the bearish trend.
