Let’s take a closer look at the price movement on the USD/CAD currency pair chart for this week ahead of the Canadian jobs data report and the United States (US) NFP soon.
While the US dollar was affected by the outcome of the FOMC meeting, the Canadian dollar which is sensitive to the crude oil market is seen moving driven by changes in crude oil prices in the market.
Earlier, the Canadian dollar strengthened supported by pressure factors on oil supply in the market following the European Union's (EU) plan to restrict Russian oil imports.
However, the latest report on petroleum exporting countries (OPEC) that increased production in offset by high crude oil prices has pushed the Canadian dollar to depreciate again in the market.
On the USD/CAD chart, the price has shown a bearish pattern at the beginning of the week, declining from the 1.29000 high which is the resistance zone for the price.
The decline has hit the price support zone around 1.27200 before the price exhibited a rebound in Thursday’s trading yesterday.
Driven by the re -strengthening of the US dollar after depreciating at the FOMC meeting, the price has moved back above the Moving Average 50 (MA50) support level on the 1 -hour time frame signaling for a reversal of the bullish trend.
The Canadian and U.S. jobs report at the New York session will soon determine the movements for both the Canadian dollar and the U.S. dollar.
If the rise is successful, the price is expected to pass the resistance zone at 1.2900 to record the latest 5 -month high.
The higher upside target is seen to reach around 1.29600 which is the high reached in December 2021.
Yet if the results of the jobs report push prices to decline lower again, the support zone around 1.27000 will be the initial focus.
And for a decline on a more obvious bearish trend, the price is likely to return to previous focus levels such as 1.2600 or 1.2500 for a continued decline.
