USD/CAD firm above 1.2700 ahead of Canadian employment report

After hitting a 5-week low on Wednesday, profit taking move witnessed in crude oil is assisting the USD/CAD pair to continue with its recovery for second day running. 

The pair, however, remained below Thursday's high and has now trimmed its gains from session high level of 1.2758 to currently trade near 1.2740 as investors now await the release of Canada monthly employment report, later during NA session. Consensus estimates point to a rise in the number of employed people by 3.1k during May, while unemployment rate is expected to hold steady at 7.1%. 

From the US, investors will also confront the release of Prelim UoM Consumer Sentiment for the month of June.

In the meantime, retracement in crude oil price accompanied with a safe-haven demand for the greenback is assisting the pair to extend a tepid recovery.

Technical levels to watch

A sustained up-move beyond 1.2760-70 immediate resistance should assist the pair towards 50-day SMA resistance near 1.2875, with 1.2800 round figure mark acting as intermediate resistance. On the flip side, weakness back below 1.2700 handle is likely to find support near 1.2650 weekly low, which if broken might expose 1.2600 round figure mark.