The price chart of the USD/CAD currency pair in the last session last week has displayed interesting movements with a focus on the release of employment reports for both Canada and the United States (US).
Although the US dollar strengthened against several other major currencies when the report was published, the Canadian dollar was more dominant.
On the US NFP jobs report, all components of the data were positive with employment growth in April better than forecast and average earnings also rising.
In addition, the unemployment rate fell lower than in the previous month when the market expected the figure to increase.
As for Canada's employment report, employment growth was higher than the forecast of a decreased figure for April while the unemployment rate was forecast to increase but remained unchanged.
The reaction after both reports were published at the same time saw the Canadian dollar strengthen against the US dollar, pushing the price on the USD/CAD chart down to a new 2-week low.
The price that moved below the 1.35000 level continued its further decline until it broke through the 1.34000 level at the end of the New York session.
After reaching a new low around 1.33700, the price started to slow down and resumed trading in the Asian session today (Monday), the price is still flat around that area.
A lower decline will be expected for the price towards the concentration level which is at 1.33000 which was the price support during the last April trading.
Continuing further decline will push the price towards the 1.32000 level and will record the latest 6-month low.
However, if the price manages to retrace above the 1.34000 level, the upside could likely head back to 1.35000 to test that important zone.
Next, investors will evaluate the bullish signal to support the price continuing the rise to higher levels. The target is to reach the resistance zone again at 1.36600.
