The price chart of the USD/CAD currency pair was among the focus of investors at the end of last week's trading following the employment data report for both the United States (US) and Canada published together.
The US dollar suffered a sharp decline and failed to maintain its excellent performance supported by the signal of policy tightening by the Federal Reserve (Fed), influenced by the dismal reading of the NFP employment report for October.
In contrast, Canada's jobs report was more upbeat with job gains recorded in October jumping 108,300 compared to declining expectations.
The Canadian dollar closed last week's trade on a strong note as the weak US dollar wiped out gains made during the week.
If the price movement is evaluated on the USD/CAD chart, the price has initially shown an upward pattern until reaching the expected level which is at the resistance of 1.38000.
However, as soon as it touched that high last Thursday, the price started to fall back and experienced a more drastic decline on Friday ending the end of the week sessions.
The decline has retested the support zone at 1.35000 and the horizontal price movement around it at the opening of trading earlier this week.
However, investors have already started to see a bearish trend change tendency on the chart after the price has moved back below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the USD/CAD chart.
A lower drop will be expected if the price moves below the 1.35000 level before targeting around 1.34000 to record the latest 7-week low.
An extended decline for prices to maintain a bearish trend is likely to reach the 1.33000 level.
On the other hand, if the price successfully bounces back from the 1.35000 support zone, the initial stop of the price is seen around the 1.36300 zone first before it is expected to give an indication to investors for further movement.
The continued rise will then cross the MA50 barrier with a signal for a change in the price trend before the 1.38000 resistance level will become the target again.
