The lingering concerns over the risk of the spread of the Omicron variant as well as the uncertainty that remains plaguing Evergrande have already weighed on the movement of the Canadian dollar.
Although the Bank of Canada (BOC) kept interest rates unchanged, the central bank is expected to reaffirm plans to raise interest rates earlier based on the positive data published.
The FOMC meeting in the early hours of Thursday morning is also likely to be the focus of the market in anticipation of the Federal Reserve (Fed) responding to the hawkish statement hurled or vice versa.
Prices on the USD/CAD chart are seen showing volatile movements at the close of last week's trading (Friday) to remain hovering in the RBS (resistance become support) zone of 1.27000.
Nevertheless the price movement is still trading above the resistance level of the Moving Average 50 (MA50) on the 1 -hour time frame to give an early indication of a bullish trend change.
Meanwhile, the price appears to have eased at the beginning of the Asian session today (Monday) to re -hit the RBS 1.27000 zone and started to show pace in showing a surge in the opening of the European session.
Thus the SBR (support become resistance) zone of 1.28000 will likely be the next direction to be reached first before continuing to jump up to the resistance zone of 1.28500.
The reaction to the resistance zone is likely to be assessed by investors to anticipate whether the zone is able to be broken or will continue to remain preventing higher surges.
On the other hand, the RBS zone of 1.27000 is expected to be hit if the price returns to show a decline, which will probably track the support zone of 1.26000 and also the lowest level in 4 weeks.
