Canada’s well -published Gross Domestic Product (GDP) data in the New York session (Tuesday) appears to have supported the Canadian currency to return strong on the financial market stage.
Furthermore, the surge in oil prices to recent highs following OPEC's decision to maintain oil production rates has also to some extent provided support to the Canadian currency.
However, the mainstay that most investors will be looking forward to is the Canadian jobs report as well as the United States (US) NFP data report which will be published this Friday.
Looking at the price chart of the USD/CAD pair, the price seems to have returned to the highs recorded in early January around 1.28000 before re -displaying the plunge.
A plunge approaching 150 pips is seen retesting the 1.26500 level and remains traded below the Moving Average 50 (MA50) resistance level on the 1 hour timeframe.
The price movement below the resistance level also gave an early signal for the price to change the bearish trend after the excellent price displayed a rise of more than 300 pips.
The next backup is likely to be placed in the RBS (resistance become support) zone of 1.26000 which is expected to be tracked if the price remains intact translating the bearish trend of the price.
A further decline will indirectly push the price to hit the support zone as well as the 2022 lows around 1.24560 which also helped the price surge in mid -January.
However, if the price movement re -presents an excellent performance in making the rise, then the resistance zone of 1.27000 may be tested first before reaching the zone of 1.28000.
The latest 5 -week record high is likely to be created if the price manages to show even more aggressive action if it continues to get support from rising oil prices.
