USD/CAD confined in pre-NFP range above 1.3000

The USD/CAD pair continued with its pre-NFP range-bound move, holding its neck above 1.3000 handle to currently trade around 1.3020-25 band.

Heading into the key event risk, NFP, traders are positioning themselves cautiously and seemed reluctant to carry big positions. The US monthly jobs report has been known for generating substantial volatility in global financial markets and happens to be one of the key factors in determining the Federal Reserve's monetary policy stance. 

Although at its meeting in July, FOMC left interest-rates unchanged but had left doors open for a potential rate-hike in September. Hence, today's data would be keenly scrutinized in order to gauge the possibilities of an imminent interest rate-hike decision before the end of this year.

Apart from NFP data, the pair would continue to derive movement from sentiment surrounding crude oil prices that drives demand for commodity-linked currencies - like Loonie. 

Technical levels to watch

The pair is once again attempting a recovery from 1.3000 psychological mark and thus, a follow through buying interest above 1.3040 immediate resistance should lift the pair back towards the very important 200-day SMA resistance near 1.3080. A subsequent break above 200-day SMA should assist the pair back towards weekly high resistance near 1.3150 region.

On the flip side, a sustained weakness below 1.3000 handle seems to drag the pair immediately towards 100-day SMA support near 1.2950-45 region, below which the pair might turn vulnerable to continue drifting lower in the near-term.