USD/CAD Plunged All Last Week, The Price Has Reached the 1.3500 Level

<p>&nbsp;The continued rise in oil prices until last week was seen as supporting the Canadian dollar.</p><p><br /></p><p>This is because crude oil is Canada's main export.</p><p><br /></p><p>Factors that are seen supporting strong oil prices are the continuation of production cuts by Saudi Arabia and Russia as well as optimism about the recovery of demand from China as the world's largest importing country.</p><p><br /></p><p>If the situation continues, the Canadian dollar will maintain its strengthening this week while Canadian inflation data to be published on Tuesday will be monitored.</p><p><br /></p><p>Last week was reported as the biggest weekly gain by the Canadian dollar since June trading.</p><p><br /></p><p>If observed on the chart of the USD/CAD currency pair, the price has displayed a decline throughout the week until reaching the 1.35000 zone.</p><p><br /></p><p>Once the 1.35000 zone was hit, the price started to flatten above it at the end of the week and also in the opening trade earlier this week.</p><p><br /></p><p>The barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the USD/CAD chart was also tested but struggled for the last price indicating that the movement is still in a bearish trend.</p><p><br /></p><p><br /></p><p>If the price continues to plunge below the 1.35000 zone, investors can expect the price to fall to around the 1.34000 concentration level.</p><p><br /></p><p>Heading around that would mark a recent 6-week low for the price.</p><p><br /></p><p>But if the price bounces back up, it is likely to indicate that the situation has started to change and the Canadian dollar is weakening again.</p><p><br /></p><p>The price increase will test around 1.35700 first as the closest resistance before the price continues its climb higher.</p><p><br /></p><p>The target is to reach the concentration zone at 1.36300 or the height reached in the last 2 weeks almost at the level of 1.37000.</p>