USD/CAD extends reversal from above 1.3000 and eyes 1.2920

• Loonie recovers strength after lower-than-expected Canadian jobs data.
• USD/CAD extends slide and turns negative for the week.

The USD/CAD pair dropped during the US session to the lowest level in two days. Near the end of the week was hovering around 1.2930, more than a hundred pips below the daily top.

Jobs data from Canada showed that during May employment dropped by 7.5K and the unemployment rate remained at 5.8% and the Capacity Utilization Rate came in at 86.1%. Another report showed that Housing Starts reached 195.6K units. Employment and housing data came in below estimates.

Despite the data, many analysts continue to see a high probability of rate hike from the Bank of Canada in the coming months. Those expectations supported the Loonie in the market.

After rising to test the 1.3040 region, USD/CAD reversed sharply. It bottomed at 1.2928 and it was consolidating daily losses. From the level it had a week ago, was modestly lower.

USD/CAD significant levels

The pair is back into the range of the previous trading days. While to the upside, remains unable to hold above 1.3000, on the downside, 1.2900/1.2920 continues to offer support.

A slide under 1.2900 would expose the 20-day moving average that stands at 1.2890/95: a close below that line could clear the way to more losses.