USD/CAD consolidates below 1.30 handle, jobs data awaited

The USD/CAD pair oscillated in a 20-pips narrow trading range and was seen consolidating previous session's tepid recovery gains from closer to 10-month lows. 

The pair on Thursday recovered early losses led by disappointing US ADP report and the recovery was primarily driven by a sharp retracement in crude oil prices, in spite of the positive EIA report that showed a massive drawdown in the US oil inventories. 

A follow-through selling pressure around oil markets and a modest pickup in the US Dollar demand helped the pair to trade with a mild positive bias for the third consecutive session on Friday.

Despite the up-move, the pair remained below the key 1.30 psychological mark as the incoming Canadian data clearly suggests that the economy is on the path of development, in-line with the recent hawkish BoC rhetoric. 

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Investors now look forwards to today's employment reports from the US and Canada, due later during the NA session, for some fresh impetus over the pair's near-term directional move.

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Technical levels to watch

Bulls would be eyeing for a decisive break through the 1.30 handle, above which a bout of short-covering could accelerate the recovery move towards 1.3060-65 intermediate resistance before the pair eventually darts back towards reclaiming the 1.3100 handle.

On the flip side, 1.2930-20 region might continue to act as immediate strong support, which if broken would turn the pair vulnerable to break below the 1.2900 handle and head towards testing its next important support near 1.2855-50 region.