The crucial contention level is seen at 1.3360, Bear cross eyed

• USD/CAD remains under selling pressure around 1.3378 amid the USD weakness. 
• Bearish outlook of the pair remains intact; the 50-period EMA is on the verge of crossing below the 100-period EMA.
• The key support level is located at 1.3360; the immediate resistance level will emerge at 1.3430. 

The USD/CAD pair holds below the 1.3400 mark during the early European trading hours on Friday. The decline in the US Dollar (USD) and lower US Treasury bond yields weigh on the USD/CAD pair. The pair currently trades near 1.3378, down 0.08% on the day. Later on Friday, traders will closely monitor the US Nonfarm Payrolls (NFP) report for fresh catalysts, which is estimated to see 180,000 jobs added in January. 

From the technical perspective, USD/CAD maintains the bearish outlook unchanged as the pair is below the 50- and 100-period Exponential Moving Averages (EMA) on the four-hour chart. It’s worth noting that the 50-hour EMA is on the verge of crossing below the 100-hour EMA. If a decisive crossover occurs on the four-hour chart, it would validate a Bear Cross, highlighting that the path of least resistance for USD/CAD is to the downside. 

The crucial support level for the pair is seen at 1.3360, representing the lower limit of the Bollinger Band and a low of January 31. A breach of this level will expose the 1.3300 psychological round figure, followed by a low of January 2 at 1.3228.  

On the other hand, the first upside barrier of USD/CAD will emerge at the upper boundary of the Bollinger Band at 1.3430. A decisive break above the latter will see a rally to the 1.3500 round mark. The additional upside filter to watch is a high of January 25 at 1.3535. 

USD/CAD four-hour chart