The price chart of the USD/CAD currency pair has displayed a flat movement throughout this week continuing the gloomy pattern from last week.
The movement of the Canadian dollar currency was influenced by the sentiment of the crude oil market, which witnessed the depreciation of the currency which was affected by the drop in oil prices to the lowest level in 6 months.
The fall in oil prices was driven by investor concerns about the increasing economic slowdown amid reduced demand from the world's giant economy, the United States, which is now also reportedly facing the spread of the Monkeypox virus.
The decline was the lowest level recorded since February which appears to have wiped out all the gains recorded during the situation of the Russian invasion of Ukraine.
US crude oil inventories rose sharply last week by 4.5 million barrels compared to expectations for a decline to 1.4 million barrels.
The focus is now on the publication of the United States (US) NFP employment data report in the New York session shortly, which will have a big impact on the movement of the US dollar on trading in this last session.
In addition, the Canadian employment data report that will be published together will also be given the attention of the market including the central bank and will affect the Canadian dollar currency.
Looking at the price movement on the chart of the USD/CAD currency pair, the price showed a rise from the support level of 1.28200 in the New York session and continued to rise until connecting to Europe this evening.
The price has risen above the Moving Average 50 (MA50) barrier on the 1-hour time frame on the USD/CAD chart to signal a bullish move, but is still seen moving in a flat zone with resistance at 1.29000 still preventing price gains.
If the price manages to bounce higher and pass the 1.29000 level, the price is expected to continue strengthening to continue the bullish trend movement with expectations for the next target to reach the 1.30000 level to reach the latest 2-week high.
Meanwhile, if the price fails to continue strengthening or is likely to plunge after the employment data report is published, the support level of 1.28200 will be tested again and the continued decline will target the 1.27700 zone after the signal of a change in the bearish trend is assessed by investors.
A lower drop is predicted to shrink to the 1.26000 support zone for the price to break out of the flat zone these few weeks and record the latest 8-week low.
