USD/CAD sets up for a hectic showing to end the week, but still trapped inside 1.28-1.29

• The US Dollar is giving up some ground for early Thursday after an aggressive showing for Wednesday's FOMC meeting.
• Some volatility is inbound for the pair ahead of Friday's NFP.

The USD/CAD is drifting lower in a quiet Asia session, hitting into 1.2850 ahead of the European markets.

The pair has middled inside of a tight range from 1.29 to 1.28 for eight straight trading days, and reactions to macro figures have been limited as traders likely wait for this week's Non-Farm Payrolls on Friday. 

Before NFP Friday, Thursday will be bringing Jobless Claims at 12:30 GMT and Markit PMIs at 13:45 GMT. Jobless Claims are expected to tick up slightly while the Markit Composite PMI for April is expected to shift higher from 54.8 to 55.2.

On the CAD side will be Canadian International Merchandise Trade, also at 12:30 GMT, which is forecast to move from a $-2.69 billion deficit to $-2.24 billion deficit.

USD/CAD levels to watch

As the Dukascopy Bank Team noted, the USD/CAD's still facing some stiff bearish pressure: "the downside risks started yesterday after the currency pair pierced a resistance cluster set by the combination of the weekly and the monthly PPs near 1.2902. During this period of bearish pressure, the exchange rate breached all significant support level. Namely, the 55-, 100-, and the 200– hour SMAs and the monthly pivot point. Also, a breakout occurred through the lower boundary of an ascending pattern. Technical indicators suggest that the USD/CAD currency exchange rate is likely to decline further south until it encounters a support at the 1.2771."