USD/CAD keeps with technical rejection, surges higher amid softer risk mood

The dollar is holding firmer on the day as risk tones are looking more subdued as highlighted earlier here. That is seeing the antipodeans whacked pretty badly but the loonie is the next in the firing line with USD/CAD up 0.6% to near 1.2850 currently.

The pair continues its jump after buyers have defended the 200-day moving average (blue line) at the end of last week:

That is now seeing price push back above 1.2800 and its 100-day moving average (red line) at 1.2799 today, with buyers also seizing near-term control of the pair as price skirts above both the 100 and 200-hour moving averages at 1.2805 and 1.2840 respectively.

It’s been tough to navigate price action in the pair recently with the volatility in oil making it tough to read the flows in the loonie. But with risk sentiment starting to come back into focus to start the week, at least there is something that traders are used to working with.

The upside push here is a positive reinforcement for buyers to try and angle towards the swing region resistance around 1.2945-50 next with the 5 August high at 1.2985 also one to watch.