As mentioned in last week's analysis, the price movement on the chart of the USD/CAD currency pair will definitely be lively in the New York session on Friday as both currencies are awaiting the employment data report of their respective countries.
Focusing on the United States (US) NFP employment report, job gains in June recorded a figure of 209,000 which was the lowest increase in more than 2 years.
The US dollar currency was significantly weakened when the initial reaction to the report was published and also saw the price on the USD/CAD chart make a drastic plunge towards the end of the trading session in New York.
The Canadian dollar gained an advantage when the increase in jobs in Canada for June was much higher than the forecast of 59,000 from 19,800.
However, the concern is that Canada's unemployment rate increased from 5.2% to 5.4%.
This raises some questions as to whether the central bank of Canada (BOC) will continue to raise interest rates or not at the meeting that will take place this week.
The BOC is predicted to further raise the interest rate from the previous level of 4.75% to 5.00%.
On the USD/CAD chart, the price seen showing the increase last week had already reached a height of 1.33800 before the plunge that took place pushed the price down to the 1.33000 level.
A bearish signal is assessed by investors after the price moves back below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the USD/CAD chart.
Continuing the opening of trading earlier this week, the price has slightly increased from the 1.32700 level retesting the 1.33000 level.
If the price increase continues beyond 1.33000, the MA50 barrier will be tested.
If broken, the price is likely to reach the highs of the past week again with the target being close to the 1.34000 zone.
However, if it resumes its plunge like last week, the price support zone at 1.32000 is seen as the main focus to be tested.
If it breaks through the zone, the price can reach around 1.31000, which is one of the zones that became the focus of trading at the end of June.
