USD/CAD Driven by Jobs Data, Price Plunges 120 Pips!

<p>&nbsp;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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>However, the concern is that Canada's unemployment rate increased from 5.2% to 5.4%.</p><p><br /></p><p>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.</p><p><br /></p><p>The BOC is predicted to further raise the interest rate from the previous level of 4.75% to 5.00%.</p><p><br /></p><p>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.</p><p><br /></p><p><br /></p><p>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.</p><p><br /></p><p>Continuing the opening of trading earlier this week, the price has slightly increased from the 1.32700 level retesting the 1.33000 level.</p><p><br /></p><p>If the price increase continues beyond 1.33000, the MA50 barrier will be tested.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p>