The Canadian Dollar and the Outlook

The Canadian Dollar from an Economic Perspective

The Canadian dollar pair declined during Friday’s trading session for the second consecutive week.

Some important data was released today from the U.S. economy, with the Nonfarm Payrolls (NFP) figure falling more than expected, and average hourly earnings declining from 0.3% to 0.1%.

In Canada, job growth exceeded expectations, rising from 18,000 to 75,000 jobs.

The Canadian Dollar from a Technical Perspective

The Canadian dollar pair is trading within an ascending price channel. Today, the pair retreated and managed to break below the 1.3990 level, closing below it on the 4-hour chart.

The pair is currently poised for further declines toward the lower boundary of the descending price channel near the 1.3900 level.

Any corrective rally by the pair toward the 1.3990 to 1.4005 levels is expected to present a strong selling opportunity.

The bearish scenario would fail if the pair breaks out of the downward price channel on a 4-hour candle.