USD/CAD testing highs near 1.2800

The Canadian dollar is suffering the dominating risk aversion environment on Monday, helping USD/CAD to regain the 1.2800 neighbourhood.

USD/CAD focus on oil, risk trends

Adding to the selling mood around CAD, crude oil prices are extending their retracement from last week’s fresh 2016 highs, currently dropping over 1% around the mid-$48.00s per barrel of West Texas Intermediate.

Empty dockets in Canada and the US will leave the attention to the risk-appetite trends as the main drivers of sentiment, at least until tomorrow when US Retail Sales and the API’s report on crude stockpiles are published.

USD/CAD significant levels

As of writing the pair is up 0.05% at 1.2792 facing the next hurdle at 1.2879 (55-day sma) ahead of 1.2951 (20-day sma) and finally 1.3145 (high May 30). On the downside, a break below 1.2655 (low Jun.8) would expose 1.2590 (low Apr.20) and then 1.2458 (2016 low May 3).