The price chart of the USD/CAD currency pair moved horizontally towards the weekend influenced by the global crude oil market.
The volatile movement of crude oil prices in Friday's trade ahead of a meeting involving countries that will discuss new releases for emergency oil reserves along with mass production by the United States (US).
Due to supply disruptions from Russia, US President Joe Biden on Thursday announced the production of 1 million barrels a day for a period of 6 months starting in May.
It is still unclear to assess the stability of the current oil market making the Canadian dollar also affected, looking for direction in the market.
The price hovered around the 1.25000 level after this week's low was reached around 1.24300 on Wednesday, slightly above the support zone in January trading last year as the price recorded the latest 4 -month low.
However, the price movement is seen flat towards the end of the week and there are early indications for a change in the bullish trend after the price moved back above the support level of the Moving Average 50 (MA50) on the 1 -hour time frame on the USD/CAD chart.
Investors are expected to await the US NFP employment data report in the New York session to determine further price movements.
If a clear surge in the price signals to make a rebound, the initial resistance seen to be tested is at the 1.26000 zone.
And a higher rise past that resistance could in turn reach the level around the 1.26700 zone or at 1.27700.
On the other hand if the price plunges lower past this week's lows, the support level of 1.24000 is seen to be a target to test.
The continued lower decline is seen to be heading to the 1.23000 level to test the support zone last October 2021.
