The USD continues to stand tall in retaining its throne as the king of currencies as investors are seen to be ready to look forward to the Federal Reserve's (Fed) policy decision tonight.
It is also pointed out that the Canadian dollar continues to receive a slowing impact due to concerns that the growing Omicron variant has resulted in increasingly gloomy global crude oil demand.
The upcoming New York session will inevitably focus on Canadian inflation data and United States (US) retail sales data which will influence the movements of the Canadian dollar and the US dollar.
It seems that the price movement on the chart of the USD/CAD currency pair continues to see a more violent surge after the price continued to continue rising until it surpassed the high of 1.28500.
That is, the surge has already recorded the highest level of the last 12 weeks around 1.28670 to close the trade with a bullish candle in showing a clearer bullish trend.
But the price movement seems to show a decline so far in today's trading (Wednesday) which is seen to re -test previous highs and continue to maintain a slow momentum.
All these factors have indirectly given the impression to see the price heading back to the resistance zone of 1.29000 if the price continues to remain able to record a surge.
First investors are likely to assess the price reaction in the resistance zone whether it is breakable or otherwise, a more violent surge will support the price reaching the 1.29500 zone.
While the RBS zone (resistance become support) at 1.28000 will probably be reached if the price movement repeats the decline which will also signal a change in trend.
Signals of a trend change will be more pronounced if the price overcomes the resistance level of the Moving Average 50 (MA50) which will push the price back to the RBS 1.27000 zone.
