USD/CAD moves up to 1.2570, its highest since 7 October, and threatens a break of its 100-day moving average
Commodity currencies are bearing the brunt of the drop in the FX space today, being punished with the dollar pushing higher; even though the greenback's advance against the euro and pound has been trimmed in the past hour or so.
USD/CAD in particular is now at fresh five-week highs and is targeting to establish the next upside leg, as price threatens a break of its 100-day moving average (red line) @ 1.2537.
Hold a break above that and buyers will see a more bullish bias moving forward.
There will be resistance closer to 1.2600 and then the 50.0 retracement level of the recent swing move lower around 1.2619. That could keep gains in check for a bit but it is tough to fight the dollar momentum currently across multiple charts.
Elsewhere, AUD/USD is down 0.5% to 0.7290 while NZD/USD is down 0.6% to 0.7015.
The former is in a rough spot as well as the downside break this week continues while the latter is now seeing sellers test waters below its own 100-day moving average of 0.7023.
The tough part to reconcile about the drop in commodity currencies today is that it comes against the backdrop of a slightly more positive mood in equities. European indices are mixed but steady with the DAX briefly clipping record highs and up 0.1% now.
Meanwhile, S&P 500 futures are up 0.3%, Nasdaq futures up 0.5%, Dow futures up 0.1%.
