The Canadian dollar in trading this week hovered at a 2 -year low against the US dollar influenced by crude oil market sentiment.
Oil prices fell 1% on Thursday on concerns over a global economic downturn that could lead to a decline in supply demand.
In addition, adding to the pressure are geopolitical tensions in Europe and also concerns over movement restrictions in China, which is one of the world's largest consumers of oil.
On the price chart of the USD/CAD pair, the price is seen to have made a rise this week and hovered in the 1.3000 high zone, which is the highest price zone since the end of 2020.
While the Canadian dollar was overshadowed by the declining oil market, the US dollar still maintained its strength although momentum was slightly affected compared to last week.
There was a drop in prices in Wednesday's trading, following a mixed reaction from investors after the US inflation data was published.
However, the re -strengthening of the US dollar which moved towards the end of the New York session has pushed the price back up from the RBS (resistance become support) zone of 1.29000 to the 1.3000 zone.
Prices that maintain movement above the Moving Average 50 (MA50) support level will signal for bullish movement on the USD/CAD chart.
The slow rise in prices was seen in the Asian session this morning following the opening of the European session with the price moving back above the 1.3000 level and past the MA50 level.
Higher gains can be expected to continue the previously likely bullish trend to the latest highs around 1.31000.
However, if the price plummets again, the RBS 1.2900 zone will once again be the focus to be tested and if the zone fails to contain the decline, investors will be prepared for a change in the price trend.
Further decline in the price will lead to the support zone in the previous weeks around 1.27300.
