USD/CAD 30 Minute Chart

(Created using Marketscope 2.0 Charts)

The USD/CAD traded lower last week, after the release of better than expected employment data.CAD unemployment was expected at 7.3% and released at 7.1% As well. Data on net changes in employment also beat expectations at +40.6k. This news has caused the USD/CAD to breakout below this morning’s R4 pivot point at a price of 1.3053. Traders may find initial bearish targets for the day at 1.2964, by extrapolating 1X today’s 89 pip range.

USD/CAD 30 Minute Chart

(Created using Marketscope 2.0 Charts)

As prices are now moving towards new weekly lows, technical traders should note this move is back in the direction of the USD/CAD’s prevailing downtrend. This trend is depicted below, and prices can be seen declining as much as 694 pips from the March 2016 high at 1.3554. Most notably, this trend is held under a descending trendline, which has been created by connecting a series of wicks, which includes the April 2016 high at 1.3218. If prices remain under this value of resistance, trend traders may continue to look for opportunities to sell the market. Alternatively, in the event of a bullish reversal, traders may watch for a move above this value to signify a shift in the present market conditions.

USD/CAD Daily Chart

(Created using Marketscope 2.0 Charts)

Find out the latest positioning totals with DailyFX’s sentiment page

SSI (speculative sentiment index) for the USD/CAD is currently reading at +1.27. While this SSI reading is not considered extreme, this positive value when taken as a contrarian signal suggests a bearish bias for the pair. In the event of future declines, traders should look for SSI to move higher towards +2.0 or greater. Conversely, in the event of a bullish reversal, traders may look for SSI to neutralize or even flip to a negative reading.