Want to trade USD/CAD? Get to Know the Development of the Oil Market & BOC Meeting

<p>&nbsp;The Canadian dollar is currently seen as having the advantage of strengthening in the market after being influenced by the development of the global crude oil market.</p><p><br /></p><p>It was recently reported that Saudi Arabia and Russia will continue to reduce their crude oil production until the end of this year.</p><p><br /></p><p>Thus, this has been a factor in the surge in oil prices yesterday and the Canadian dollar gained positive momentum as crude oil is Canada's main export.</p><p><br /></p><p>However, investors should be cautious ahead of the central bank of Canada's (BOC) policy meeting in the New York session tonight.</p><p><br /></p><p>The BOC is expected to keep interest rates unchanged at 5.00%, and if the central bank's follow-up statement is dovish, the Loonie is at risk of weakening.</p><p><br /></p><p>The price chart of the USD/CAD currency pair on Tuesday yesterday saw a jump to the latest 4-month high around 1.36700 as the US dollar showed its strengthening again.</p><p><br /></p><p>However, in the New York session, the price decreased again with the strengthening of the Canadian dollar which pushed the price to around 1.36000.</p><p><br /></p><p>However, the price failed to continue the decline lower and bounced back to around the 1.36400 level at the close of the New York session.</p><p><br /></p><p><br /></p><p>The price movement is still above the support of the Moving Average 50 (MA50) on the 1-hour time frame on the USD/CAD chart, giving the impression of a bullish trend.</p><p><br /></p><p>If the rise continues to higher levels, the price will overcome the highs reached yesterday to record the latest highs.</p><p><br /></p><p>The target is to head up to the 1.38000 zone after the last time the price touched it in the last March trade.</p><p><br /></p><p>However, if the price makes a drop below the MA50 level, it will be an early warning to investors for the impending price drop.</p><p><br /></p><p>The price drop can be targeted to the 1.35000 level for the price to test the support zone that has previously been in focus several times.</p>