In yesterday's New York session, two data focused on publication, namely the Canadian employment report and the United States (US) unemployment benefit claims data.
Interestingly, both the Canadian dollar and the US dollar reacted differently to the supposed data reading.
The component on Canadian employment data improved slightly, but failed to spur a strengthening Canadian dollar.
This is because the reading is not enough to convince investors that the Bank of Canada (BOC) will change its stance on monetary policy which is currently in the phase of temporarily stopping the tightening.
Meanwhile, the US dollar managed to survive even though the number of unemployment claims last week showed a higher figure than forecast.
This translates into price movements on the chart of the USD/CAD currency pair.
If observed, the price movement was more horizontal and slower yesterday, but still showed an upward pattern until it reached the 1.35000 level again.
At the beginning of the week, the price has made a decline past the 1.35000 level until around the 1.34000 zone after being affected by the decision to reduce oil production by OPEC+.
As of the end of this week's trade, the price is still slow around the 1.35000 zone, but it is hinting that a price increase could happen with the price staying above the Moving Average 50 (MA50) support level on the 1-hour time frame on the USD/CAD chart.
If the price continues to rise past 1.35000, the price will return to the concentration zone of last month around 1.36600 with a clearer bullish movement signal.
However, if the price bounces back down from the 1.35000 level, the 1.34000 support zone will return to the price stopover area and will also be tested.
A break lower beyond that would record a recent 7-week low.
