• USD/CAD bounces off a multi-week low touched this Friday, albeit lacks follow-through.
• An uptick in Oil prices underpins the Loonie and acts as a headwind amid a softer USD.
• Traders also seem reluctant to place aggressive bets ahead of the Canadian jobs report.

The USD/CAD pair once again finds some support near the 50-day Simple Moving Average (SMA) and stages a modest bounce from the 1.3720-1.3715 region, or a three-week low touched earlier this Friday. Spot prices, however, struggle to capitalize on the move and remain below mid-1.3700s through the first half of the European session.

Meanwhile, the uptick lacks any obvious fundamental catalyst and could be solely attributed to some repositioning trade ahead of the release of Canadian monthly employment details. Any meaningful recovery, however, still seems elusive in the wake of the recent rise in Crude Oil prices, which tends to underpin the commodity-linked Loonie. Furthermore, the emergence of some US Dollar (USD) selling, led by a fresh leg down in the US Treasury bond yields, further contributes to capping gains for the USD/CAD pair. 

From a technical perspective, oscillators on the daily chart have just started gaining negative traction and support prospects for an extension of the recent sharp pullback from the vicinity of the mid-1.3900s, or the highest level since October 2022 touched on Monday. Bearish traders, however, might wait for a sustained break and acceptance below the 50-day SMA pivotal support before placing fresh bets. The USD/CAD pair might then weaken further below the 1.3700 mark and test the 1.3680-1.3675 support zone.