The recovery in the performance of the US currency last week seems to have limited the bearish pattern displayed on the previous chart of the USD/CAD pair.
Last week, the price movement was more horizontal and started to approach the 1.35000 zone which became a resistance at the end of the week.
However, a surge was displayed in the trading of the Asian session this morning (Tuesday) following the flat movement throughout the opening of the early week yesterday.
If the US dollar manages to recover and resume trading in early September, the price is more likely to record a higher increase.
Furthermore, expectations for a third consecutive interest rate cut by the Bank of Canada (BOC) at this Wednesday's meeting put pressure on the Loonie's movement.
Investors have identified bullish movement signals since last week when the price started to move above the Moving Average 50 (MA50) support line on the 1-hour time frame on the USD/CAD chart.
After breaking through the 1.35000 resistance, the price was around 1.35300 at the opening of the European session this evening.
Higher price increases are expected to continue towards the next target zone at 1.36000.
However, the employment data of the United States (US) that will be published this week can also influence the fall of the US dollar again.
If it does, the price could plunge back below the 1.35000 level and again signal a bearish move.
If the downward pattern throughout last August continues again, the price can be targeted to reach the latest low around 1.34000.
