The USD/CAD has decreased sharply and has resumed the yesterday’s bearish candle, has plunged aggressively and has reached fresh new lows. The rate rate has decreased and has reached another downside target, has fallen as the USD was weakened by the USDX’s drop, the index has decreased even if the United States economic data have come better today, the rate was dragged by the technical factors, I’ve said in my previous analysis that we may have a larger decrease because the price is exhausted on the short term, right now has fallen below some important support levels, but remains to see if will be a valid breakdown or not.

The Loonie has increased because has received a helping hand from the Canadian economic data, the Unemployment Rate has dropped from 7.0% to 6.8% , has beaten the 7.0% estimate and has reached the July 2016 low, while the Employment Change has come in much better than the economists estimate, was reported at 10.7K, much higher versus the -16.5K prediction, the indicator has stayed in the positive territory for the fourth consecutive month. The Canadian Labor Productivity has disappointed a little, the economic indicator has increased by 1.2%, more versus the 1.1% estimate.

The rate has decreased sharply this week and has managed to escape from the ascending channel, has plunged much below the sliding parallel line (ascending dotted line) and below the 38.2% retracement level, has managed also to escape from the minor descending pitchfork’s body, but has found strong support at the 1.3251 static support. Could bounce back to retest the broken support levels, but the perspective is somehow bearish after the breakdown below the sliding line, we still need a confirmation because you can see that we had another false breakout on October 19. The pair could resume the bearish movement because the USDX is under pressure on the short term, could drop aggressively if the FED will delay once again to hike the rate in December 14, the Federal Funds Rate has remained steady at 0.50% since December 2015 despite that the FED has promised that will increase the rate several times in 2016.