There are indicators that investors need to pay attention to on the chart of the USD/CAD currency pair since the beginning of this week.
If examined several price increases are seen to be stagnant at the height of 1.34000 which is seen as a resistance zone for prices.
Coupled with the uncertain market situation at the moment, the price movement was flat below the 1.34000 zone until yesterday when the palpitations await the data figures for the United States (US) inflation report tonight.
The US inflation data will be an additional key indicator after the NFP jobs were scrutinized last week, to get a clearer direction for the Federal Reserve's (Fed) monetary policy setting heading into the FOMC meeting in early February.
The price movement on the USD/CAD chart in the Asian session this morning (Thursday) is seen to display a bearish pattern, but it gives new signals to investors for a change in the price trend.
The price started to move below the Moving Average 50 (MA50) barrier line on the 1-hour time frame of the chart, becoming a bearish warning after the 1.34000 resistance failed to break through.
The initial concentration level if a continued decline is seen is around 1.33000.
The level was also tested by the price when the volatile movement that occurred last Friday when the reaction to the NFP data was published.
However, if the inflation data published tonight succeeds in pushing the price up, breaking the 1.34000 resistance will potentially push the price to a higher level.
The latest 4-week high will be noted with a price target to reach around 1.35000.
