USD/CAD is up by over 100 pips today, moving back towards 1.4000
The notable thing about the rise in the pair today is that price has broken back above its 100-hour MA (red line) and buyers are now looking for a test of the 1.4000 level as well as the 200-hour MA (blue line) @ 1.4012.
The near-term bias is more neutral now but if buyers can break above the key resistance levels above, the bias will turn more bullish.
There is further resistance from the near-term downwards trendline at around 1.4065 but baby steps. Buyers are starting to gain momentum as we are seeing the dollar gain on the back of risk aversion in the market, but also as the loonie falls on weaker oil prices.
WTI crude briefly touched its lowest level since 2002 and is trading sub-$20 currently while equities are down and bonds are bid in trading so far today.
If anything, it is but a strange situation to see the loonie stay where it is given the situation in the oil market (in the context of the bigger picture that is).
Granted, there is some degree of softness in the dollar over the last week or so but the loonie feels like it has more "catching up to do" in due time.