USD/CAD struggles to recover daily losses, remains in daily range above 1.25

• Industrial Product Price Index in Canada rises 1.4% in November.
• ADP announces 250K increase in private employment in the U.S.
• DXY fails to take advantage of the upbeat employment data.

Following the initial reaction to the macroeconomic data releases from the United States and Canada, the USD/CAD pair continues to trade in its daily range. As of writing, the pair was at 1.2530, down around 10 pips, or 0.06%, on the day.

Today's data released by the ADP showed that private sector employment in the U.S. increased by 250K in December following November's 185K rise. This reading beat the market expectation of 190K and signaled toward a strong NFP reading on Friday. However, the US Dollar Index, which failed to break above the 92 mark despite a relatively hawkish FOMC statement on Wednesday, struggled to gain traction and was last seen 91.66, where it was losing 0.25% on the day.

On the other hand, Canadian data revealed that the Raw Material Price Index rose 5.5% on a monthly basis in November and the Industrial Product Price Index increased 1.4%, primarily due to higher prices for energy and petroleum products. Both readings surpassed the market estimates and helped the loonie stay steady against the greenback.

Later in the session, Markit is going to announce the PMI data for the service sector in the United States. However, ahead of tomorrow's critical employment report, the market reaction could stay limited.

Technical levels to consider

The pair could encounter the first technical support at 1.2500 (psychological level/Dec. 3 low) ahead of 1.2450 (Oct. 19 low) and 1.2410 (Sep. 29 low). On the upside, resistances align at 1.2620 (100-DMA), 1.2700 (psychological level) and 1.2745 (50-DMA).