Anna 
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The USD/CAD pair is exhibiting a narrow trading range around the 1.3450 mark as investors eagerly await the release of Canadian Employment data for January, scheduled for 13:30 GMT.
Market expectations include the anticipation of Canadian employers adding 15,000 new workers, countering the stagnant demand observed in December. Projections suggest a slight uptick in the Unemployment Rate to 5.9%, compared to the previous reading of 5.8%. Analysts suggest that the Bank of Canada (BoC) may prioritize maintaining interest rates at their current level for an extended period if labor market conditions continue to display positivity.
Simultaneously, the US Dollar Index (DXY) is striving for a recovery amidst a cautious market sentiment intensified by escalating tensions in the Middle East. Israel’s rejection of a ceasefire proposal from Hamas, citing unacceptable terms, contributes to the overall apprehensive atmosphere. Additionally, investors are keenly awaiting the release of January’s United States inflation data scheduled for Tuesday, with expectations of a steady expansion in price pressures.
The USD/CAD pair has entered a consolidation phase within the 1.3450-1.3500 range, following a correction from its 11-week high of 1.3544 on an hourly scale. The Loonie asset faces uncertainty as market participants await crucial labor market data. Notably, the 50-period Exponential Moving Average (EMA) around 1.3460 indicates a sharp contraction in volatility.
The 14-period Relative Strength Index (RSI) is oscillating in the 40.00-60.00 range, signaling a sideways trend in the market.
A potential upward movement in the Loonie asset is expected if it surpasses the January 17 high at 1.3542, leading towards the round-level resistance of 1.3600, followed by the November 30 high at 1.3627.
Conversely, a downward shift may occur if the Loonie asset falls below the January 31 low at 1.3359, exposing the asset to the January 4 low at 1.3318 and the January 5 low at 1.3288.
