Scanning trade last Friday, a drastic price movement occurred on the chart of the USD/CAD currency pair when the Canadian jobs report and the United States (US) NFP were published together.
The US dollar strengthened following a positive report for August with good job growth compared to the previous month, average wages rising and the unemployment rate meeting forecasts for a decline.
On the other hand, the situation is opposite on the Canadian jobs report when concerns were triggered by the figure on the unemployment rate which rose to 6.6% for August.
It is the highest unemployment rate since the post-pandemic 2021. During the pandemic, Canada's unemployment rate once reached 13.7% in 2020.
Therefore, the difference in the form of the report for the two shows a clear reaction to the movement of the greenback and Loonie currencies.
If you look at the USD/CAD chart, the price showed a significant surge in the New York session last Friday after the jobs report was published.
Initially the price dipped below the 1.35000 level to reach around 1.34700 before a strong rebound took place.
The high reached before the last session of the week ended was at 1.35800.
However, the price did not continue to rise higher at the opening of trading earlier in the week yesterday by only exhibiting a horizontal movement between the 1.35500-1.35700 level range.
The movement continued into the Asian session this morning (Tuesday), but the price above the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the USD/CAD chart signals for the bearish trend to continue.
Higher gains if it happens in the next session expect the 1.36000 level to be reached.
For further increases, the target will shift to the height zone of 1.37000 for the price to record the latest 3-week high.
However, if the price plunges and falls again, the level around 1.35000 is seen as one of the areas that will be the focus of the price.
Dropping lower past the end of last week's trade, the price could plunge deeper into the 1.34000 zone.
