USD/CAD consolidates near 1.3700 ahead of key employment data

USD/CAD is trading in a tight range around 1.3700, with traders awaiting Friday's crucial employment reports from both the US and Canada. The pair has established a bullish technical setup on the daily chart, with a ascending triangle pattern suggesting potential upside toward 1.3800. However, near-term direction remains uncertain as markets digest mixed signals from both economies. US jobless claims rose unexpectedly to 235K last week, while Canadian manufacturing data showed modest improvement. The pair faces immediate resistance at 1.3720 (50-day moving average) and support at 1.3680 (recent swing low). Volume has declined 20% this week, indicating hesitation ahead of the employment releases. A strong Canadian jobs report could push the pair toward 1.3650, while disappointing data might trigger a breakout above 1.3750, targeting the 1.3800 psychological level.