USD/CAD pair is trading in a tight channel ahead of critical data.
US Dollar Index slumped below 97.00 amid risk-on flows.
Nonfarm Payrolls is expected to come in at +3 million in June.

After climbing above 1.3600 in the late Asian session, the USD/CAD pair lost its traction and dropped to 1.3573 during the European trading hours. Nevertheless, USD/CAD staged a modest rebound and was last seen gaining 0.04% on the day at 1.3590.

The upbeat market mood, as reflected by the sharp upsurge witnessed in major European equity indexes, is making it difficult for the greenback to find demand on Wednesday. The US Dollar Index, which climbed to its highest level in nearly a month at 97.80 on Tuesday, is now at fresh weekly lows at 96.97.

Eyes on US NFP data

In the second half of the day, the US Bureau of Labor Statistics will release its highly-anticipated Nonfarm Payrolls (NFP) report. Markets expect the NFP to come in at +3 million in June and see the Unemployment Rate falling to 12.3% from 13.3% in May.

Previewing the data, “payrolls probably rose strongly again in June. We estimate up 4.0 million, following a 2.5 million gain in May," TD Securities analysts said. "Despite the expected strength in payrolls, we expect the unemployment rate to remain around where it was in May at 13.3%.”

On the other hand, crude oil prices are also capitalizing on the positive market environment. With the barrel of West Texas Intermediate (WTI) rising nearly 1% on the day at $40.08, the CAD stays strong against its peers and caps USD/CAD's upside. Meanwhile, the Canadian economic docket will feature International Merchandise Trade data for May.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3594
Today Daily Change	0.0007
Today Daily Change %	0.05
Today daily open	1.3587

Trends
Daily SMA20	1.3556
Daily SMA50	1.3783
Daily SMA100	1.3805
Daily SMA200	1.3493

Levels
Previous Daily High	1.3602
Previous Daily Low	1.3546
Previous Weekly High	1.3716
Previous Weekly Low	1.3486
Previous Monthly High	1.3802
Previous Monthly Low	1.3316
Daily Fibonacci 38.2%	1.358
Daily Fibonacci 61.8%	1.3567
Daily Pivot Point S1	1.3555
Daily Pivot Point S2	1.3523
Daily Pivot Point S3	1.35
Daily Pivot Point R1	1.3611
Daily Pivot Point R2	1.3634
Daily Pivot Point R3	1.3666

USD/CAD rebound from session lows, clings to small gains below 1.3600