USD/CAD Hits 10-Week High, But Traders Need To Be Alert!

<p>&nbsp;The price chart of the USD/CAD currency pair on Tuesday yesterday managed to reach a new 10-week high, maintaining the bullish movement pattern from last week.</p><p><br /></p><p>The price jumped more than 100 pips yesterday reaching a height of 1.35000 before the price retreated again towards the close of trading in the New York session.</p><p><br /></p><p>The US dollar, which managed to strengthen in the European session, then returned to trade weakly in the following session when the market reacted to the dovish statement by Philadelphia Federal Reserve (Fed) President Patrick Harker, who believes that the central bank's policy tightening is at an end.</p><p><br /></p><p>In fact, he said that it is possible that interest rate cuts will start next year.</p><p><br /></p><p>Meanwhile, the Canadian dollar was seen to have an advantage in the New York session yesterday when it was supported by the positive development of the crude oil market.</p><p><br /></p><p>Oil prices recorded an increase driven by strong economic projections of the United States (US) as the largest consumer of the commodity, anticipating positive demand.</p><p><br /></p><p>The price on the USD/CAD chart which shrank in the New York session yesterday is seen moving horizontally above the 1.34000 level in the Asian session and the opening of the European session today (Wednesday).</p><p><br /></p><p><br /></p><p>Still signaling a bullish move, the price is still hovering above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the USD/CAD chart and any reaction will give an early indication of further movement.</p><p><br /></p><p>If the price bounces back, it is likely that yesterday's bullish pattern will continue again with the latest resistance level at 1.35000 likely to be tested once again.</p><p><br /></p><p>Successfully break through, the price will record the latest high level again this week with a target heading towards around 1.36500.</p><p><br /></p><p>However, if the price moves down below the 1.34000 level and breaks through the MA50 support, this will be an early warning to investors to prepare for a lower price drop.</p><p><br /></p><p>The price could plunge to retest the previous concentration level at 1.33000 before heading to the important zone of last July's trading at 1.32000.</p>