The rise in crude oil prices in the market at the beginning of the week has had a positive impact on the trading of the Canadian dollar which is sensitive to changes in the value of black gold.
Thus, the Canadian dollar was among those who managed to take the opportunity to strengthen against the US dollar which lost momentum after the United States (US) NFP jobs report.
In addition, the Canadian jobs report which recorded job losses of up to 200,000 as well as the rising unemployment rate in January also had a negative impact on the Canadian dollar at the close of trading last week.
This situation translates to price movements on the chart of the USD/CAD currency pair where a change in the price pattern took place earlier this week.
On Friday, the price managed to jump up to the resistance zone of 1.27900 following the positive reaction of the market against the US dollar as soon as the US and Canadian NFP reports were published jointly in the New York session.
However, at the opening of the market on Monday yesterday, the price has made a decline again around 100 pips to the SBR zone (support become resistance) 1.26700 which is now a support zone for the price influenced by crude oil market sentiment.
The 10 -year US treasury yield recorded a higher increase today seen as a factor to provide support for the strengthening US dollar.
As such, the price has shown a rebound in the Asian session this morning even though the price movement is seen moving at a slower pace.
The Moving Average 50 (MA50) barrier level on the 1 -hour time frame gives a bearish indication for the price to move below it.
If the price continues its bearish pattern, it is expected that the level of 1.26000 will be tested before the price declines lower towards the RBS (resistance become support) zone of 1.25600.
On the other hand if the price manages to soar, the resistance zone 1.27900-1.28000 will be re-tested again this week.
A higher rise beyond the zone is expected to head to a high of 1.29000 to record the latest 7 -week high.
