USD/CAD pares early gains, turns flat near 1.3030

• USD/CAD moves sideways in a narrow band above 1.3000.
• Crude oil prices continue to rise for the third straight day.
• US Dollar Index closes in on 93.00 ahead of American session.

Following Monday's sharp drop, the USD/CAD pair staged a modest rebound and closed in the positive territory on Tuesday. Although the pair advanced to a daily high of 1.3157 on Wednesday, it struggled to preserve its bullish momentum and erased its daily gains. As of writing, USD/CAD was trading flat on the day near 1.3030.

WTI climbs to fresh multi-week highs

Rising crude oil prices continue to support the commodity-related loonie. Boosted by heightened optimism for a steady recovery in global energy demand after Pfizer's announcement on Monday, the barrel of West Texas Intermediate (WTI) gained more than 10% in the first two days of the week. The WTI extended its rally into a third straight day on Wednesday and was last seen trading at its highest level since early September at $42.87, rising 2.5% on the day.

On the other hand, the US Dollar Index is pushing higher toward 93.00, limiting USD/CAD's downside. There won't be any significant macroeconomic data releases featured in the American docket and the trading action is expected to remain subdued due to the Veterans Day holiday in the US and Remembrance Day holiday in Canada. 

On Thursday, the US Department of Labor will release its weekly Initial Jobless Claims data and the US Census Bureau will publish the Consumer Price Index (CPI) figures for October.

Technical levels to watch for