A bounce could take the pair baUSDCAD has formed higher lows and higher highs inside a rising channel on its hourly time frame, and the upcoming jobs releases from the US and Canada could lead to additional volatility.ck up to the channel top around the 1.2850 minor psychological mark while a break lower could set off a reversal from the uptrend.

The 100 SMA is below the 200 SMA to hint that the path of least resistance is to the downside or that support is more likely to break than to hold. Price is also trading below both moving averages, so these could hold as dynamic resistance levels.

Stochastic has been in the oversold region for quite some time, suggesting that sellers are exhausted. Turning back up would mean that buyers are taking over and could allow the uptrend to resume.

RSI has a bit more room to head south before reflecting oversold conditions, so sellers could stay in control for much longer.

The US could report a stronger pace of hiring for December, likely boosted by holiday hiring. The figure is expected to come in at 426K versus the earlier 210K gain in November, probably driving the jobless rate down to 4.1%.

A stronger than expected increase in employment could keep dollar bulls hopeful for a Fed rate hike sometime in the middle of this year, which would be bullish for the dollar. Leading indicators are giving mixed signals, however, with the ADP report and JOLTS job openings figure falling short and the ISM manufacturing PMI suggesting a pickup.

Meanwhile, Canada is eyeing a weaker pace of hiring for December, possibly reporting an increase of 24.5K versus the earlier 153.7K gain. This might be enough to spur losses for the Loonie against the dollar, as a downturn in employment could force the BOC to slow down its pace of tapering.