The Canadian dollar was one of the best performers at the opening trade yesterday which successfully showed strengthening.
Meanwhile, the US dollar is back on track to move weakly again as in previous weeks, although it managed to show some strengthening at the end of last week's trade close.
With the central bank of Canada policy factor that has stopped policy tightening, it is likely to give investors a risk if the Canadian dollar moves weak again.
However, the development of the current banking crisis, which has subsided a little, is seen to contribute to the increase in oil prices due to demand from China which is expected to recover.
This will at once support the Loonie to remain positive as crude oil is the main export commodity in Canada.
Thus, with the strengthening of the CAD and the depreciation of the USD, giving a clear indication of the downward movement of the price occurring on the chart of the USD/CAD pair.
If observed, after the price tested the resistance at 1.38000 last Friday, the decline has occurred again, continuing through the early trade of the week to the 1.36500 focus zone yesterday.
The price movement that has been below the Moving Average 50 (MA50) obstacle level on the 1-hour time frame on the USD/CAD chart also adds to the expected bearish price movement factor.
The decline continues today (Tuesday) into the European session, although at a slower pace the price has been tracking around 1.36300.
A successful continued decline is seen to lead up to 1.35000 for the price to test the support zone.
Falling lower, the 1.34000 level will be the next price target.
However, if the situation changes and sees the price change direction to make an increase again, the MA50 barrier will be tested first before the price will try to reach the 1.38000 resistance level again.
If it succeeds in passing the obstacle, the price will record the latest 3-week high towards the height reached at the beginning of March around 1.38600.
