Expected price movements on the USD/CAD currency pair chart at the end of last week were somewhat missed as the focus was directed to the Canadian employment data report published.
Examining the data component, the economy lost 17,300 jobs in May and worsened when the unemployment rate jumped to 5.2% from 5.0% previously.
However, market analysts were somewhat surprised when the reaction of the Canadian dollar was not as bad as expected.
Analysts also assessed further monetary policy projections by the central bank of Canada (BOC) after interest rates were raised by another 25 basis points.
The policy tightening measures that were seen to be continued before have been put on hold due to readings on the declining labor sector.
Looking at the USD/CAD chart, there was a bounce in price after the jobs report was published, but the decline in the Canadian dollar was not as pronounced.
Prices returned to lower again following the US dollar which had moved dismally the previous day and ended trading in the last sessions weakly.
The lowest level reached is around 1.33130 and it can be observed that the Moving Average 50 (MA50) level on the 1-hour time frame on the USD/CAD chart remains a barrier whenever an increase occurs, maintaining an indication of bearish movement.
Similarly to the price movement at the opening of the beginning of this week, the MA50 remained holding the price from making an increase and was pressed down again from the 1.33500 level.
If the downward pattern continues again this week, the 1.33000 level is seen to be tested for analysts to assess the price reaction at that level.
If the breakout is lower, investors should be prepared for a fall to reach the concentration zone at 1.32000.
However, if there is an increase again this week, the initial resistance at 1.34000 is seen to be tested.
Next, the price will continue to rise towards the SBR (support become resistance) zone at 1.35000.
