USD/CAD is trading in the red and seems determined to approach and reach some of the near-term support levels. However, the perspective remains bullish on the Daily chart despite the current drop. This could be only a temporary drop and the rate could increase again after it will test and retest some of the near-term support levels.

The USD is weakened by the USDX’s drop, but it remains to see how it will react later, after the United States and the Canadian date will be released. You should be careful because the numbers could shake the price.

The Canadian Employment Change could be reported at 12.7K, much below the 63.3K in the former reading period, the Unemployment Rate could remain steady at 5.9%, while the Trade Balance could decrease from 0.5B to 0.2B.

On the other hand, the US Unemployment Rate is expected to remain steady at 3.7%, the Non-Farm Employment Change could increase from 134K to 194K, while the Average Hourly Earnings could increase by 0.2%, less versus the 0.3% growth in the former reading period.

The Trade Balance could decrease further, from -53.2B to 53.5B, while the Factory Orders could increase by 0.5%.

USD/CAD has failed to approach and reach at least the inside sliding line (SL) of the ascending pitchfork and now is pressuring the outside sliding parallel line of the minor descending pitchfork. I’ve told you in the previous weeks that a valid breakout above the outside sliding line (sl) it will confirm a further increase and the downside could be invalidated after as the rate will escape from the down channel.

Price could test and retest the 50% line of the ascending pitchfork and the upper median line (uml) of the descending pitchfork before will jump higher again. Only valid breakdown could signal a further decrease and the major downside target remains at the 50% line of the descending pitchfork.