Starting to see a change in the price chart on the USD/CAD currency pair chart towards the end of the week with yesterday's rally.
After Canada's employment data and the United States' (US) NFP last week saw prices plummet, price movements since the beginning of the week were flat.
The price moved below the 1.34000 level which became a resistance preventing price increases from happening a few days before before the 'breakout' happened on Thursday yesterday.
After investors digested the published US inflation data, the US dollar showed strengthening towards the end of the week even though the decline in the inflation rate indicated that the Federal Reserve (Fed) is increasingly moving into an easing phase in their monetary policy.
On Thursday yesterday, after the price managed to break through 1.34000, the rise continued with the strengthening of the US dollar lifting the price back to the 1.35000 zone.
However, prices began to level off at the end of the New York session and the slow pattern continued in the Asian and early European sessions today (Friday).
What are the expectations for movement at the end of this week?
If the rising pattern is successfully maintained, the price that penetrates the 1.35000 zone will continue to climb higher to reach the 1.36500 resistance zone target again.
The rising pattern is seen to be maintained if the price movement is still above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the USD/CAD chart.
However, if the price dives back from the 1.35000 zone and passes below the MA50 level, this will trigger an expected change to a bearish trend for the price.
A lower drop will pass 1.34000 before heading to the lower support zone which is around 1.33000.
