USD/CAD stuck in a narrow range around 1.3700 handle

After yesterday's volatile move, the USD/CAD pair seems to have stabilized and oscillated within 25-pips narrow trading range around the 1.3700 handle.

The pair on Thursday surged to 1.3770 level in wake of upbeat US economic data that pointed towards underlying strength in the US labor market and inflationary pressure in the economy. The pair, however, quickly reversed US data-led gains amid rising crude oil prices, which tends to benefit the commodity-linked currency - Loonie.

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A subdued US Dollar price-action, led by a slide in the US treasury bond yields has failed to provide any fresh impetus to the pair on Friday. Also collaborating to the pair's lackluster move was range trade in oil markets, with WTI crude oil holding steady just below the $48.00/barrel mark. 

Later during the day, the US macro data - CPI, monthly retail sales and Prelim UoM Consumer Sentiment Index, would be looked upon to grab some short-term trading opportunities. Also in focus would be speeches from various FOMC members, which if reinforces market expectations for an eventual Fed rate-hike action in June should trigger a fresh leg of up-move for the greenback. 

Technical levels to watch

Immediate support is pegged near 1.3680 level, below which the pair is likely to head back towards retesting weekly lows support near 1.3650-45 zone before eventually dropping to test 1.3620-15 horizontal support. On the flip side, sustained move above the 1.3700 handle, leading to a subsequent strength beyond 1.3715 level, has the potential to lift the pair back towards mid-1.3700s en-route 1.3770 level (yesterday's swing high).