USD/CAD consolidates near 3-week lows, Canadian jobs data awaited

   •  The post-US CPI USD weakness now seems to have abated and helped limit further downside.
   •  Softer oil prices offset by weaker US bond yields and did little to influence the price-action. 
   •  Traders now eye Canadian monthly jobs report for some fresh impetus later in the day.

The USD/CAD pair now seems to have entered a consolidation phase and was seen oscillating in a narrow trading range near 3-week lows, set in the previous session.

The pair on Thursday extended this week's rejection slide from the key 1.30 psychological mark and broke below 50-day SMA support, retreating farther below the 1.2800 handle. 

A follow-through US Dollar profit-taking slide, further aggravated by softer US CPI print, coupled with the ongoing bullish run in oil prices, which tends to underpin demand for the commodity-linked currency – Loonie, collaborated to the pair's overnight sharp retracement to the lowest level since April 20.

The selling pressure, however, abated near mid-1.2700s, with a combination of factors failing to provide any fresh impetus on the last trading day of the week. The post-CPI USD fall now seems to have stalled but was largely negated by a follow-through retracement in the US Treasury bond yields. 

Adding to this, a subdued action around oil market, with WTI crude oil consolidating recent strong gains to 3-1/2 year highs, also did little to influence the pair's momentum and led to a range-bounce momentum through the early European session on Friday.

Moreover, investors also seemed to refrain from placing fresh bets ahead of today's release of monthly Canadian jobs data, with along with the second-tier release of the Prelim UoM Consumer Sentiment index from the US might provide some impetus later during the early NA session.

Technical levels to watch

A follow-through weakness below mid-1.2700s has the potential to continue dragging the pair further towards 100-day SMA support, currently near the 1.2685 region. On the upside, any meaningful recovery attempts might confront fresh supply near the 1.2800 handle and subsequent up-move might remain capped at 50-day SMA barrier near the 1.2830-35 region.