The dollar is holding firmer on the day as risk tones look more subdued, as previously highlighted here. That’s seeing the Down Under hit pretty hard, but the Loonie is next in line with USD/CAD up 0.6% to near 1.2850 currently.
The pair continues its jump after buyers defended the 200-day moving average (blue line) at the end of last week:
This now sees price rally above 1.2800 and its 100-day moving average (red line) at 1.2799 today, with buyers also taking short-term control of the pair as price rises higher at both the 100 and 200 hourly moving averages at 1.2805. and 1.2840 respectively.
It has been difficult to navigate the pair’s price action recently, with volatility in oil making it difficult to read the loonie’s flows. But with risk sentiment starting to return to center stage to start the week, there is at least something traders are used to working with.
The upside push here is positive reinforcement for buyers trying to steer towards swing region resistance around 1.2945-50 next, with the August 5th high at 1.2985 also to watch.