The Canadian dollar was influenced by Canada's Gross Domestic Product (GDP) data published on Wednesday yesterday, besides investors also monitoring the development of the still gloomy crude oil market.
Although the economy did not grow on a monthly basis, annual growth grew stronger in the first quarter at a rate of 3.1% following a contraction in the last quarter of 2022.
Therefore, the Canadian dollar looks strong in the movement in the New York session yesterday, but investors remain wary of the current situation of falling oil prices.
It can be observed on the price chart of the USD/CAD currency pair yesterday, a decline began to appear after the tested resistance level of 1.36500 failed to be broken.
The resistance was also tested at the end of last week's trade which remains a price barrier to continue climbing higher.
In addition, the US dollar currency was also seen to be moving weakly, prompting a decline with concerns over the expected dismal United States (US) NFP jobs data report for May.
The price movement that is back below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the USD/CAD chart expects the trend to turn bearish again.
A lower drop will be expected towards the 1.35000 zone for the price to test the support zone.
If broken, the decline will continue towards around 1.34000 by maintaining the bearish movement and recording a new low.
However, if the situation changes at the end of this week, the price increase will again test the 1.36500 resistance.
Once broken, the latest 9-week high will be recorded with a target of 1.38000.
