USD/CAD stuck in 3-day old trading range ahead of NFP release

After seesawing between minor gains and tepid losses, the USD/CAD pair finally seems to have stabilized and is now trading in neutral territory around 1.3100 handle. 

On Thursday, disappointment from the US ISM manufacturing PMI was negated by a sharp slide in crude oil prices and the pair remained confined in a trading range. In the pre-NFP calm, the pair extended its range-bound trading action within 3-day old 70-80-pips trading band. 

Even a minor recovery in oil prices failed to provide any impetus as market participants remained cautious heading into the big event risk, monthly jobs report from the US, later during NA trading session. 

Traders will also confront the release of Canadian monthly trade balance and second quarter labor productivity data, but is likely to be overshadowed by one of the most important economic indicators from the US, NFP.

Technical levels to watch

Bulls would be disheartened if the pair breaks below session low support near 1.3080 region, below which the pair seems to immediately head towards 1.3000 psychological mark. On the flip side, bullish momentum above the trading range resistance near 1.3145-50 zone should get extended towards 1.3200 handle before the pair eventually head towards testing July monthly high resistance near 1.3250 region.