USD/CAD surges through 1.300 mark, hits fresh weekly high

A fresh bout of US Dollar buying interest emerged during early US trading hours, with the USD/CAD pair surging through 1.3000 psychological mark to currently trade at a fresh weekly high near mid-1.3000s. 

After initially struggling to clear 100-day SMA barrier, the Canadian employment report provided the required momentum to surpass this immediate resistance and extend its bullish traction further beyond 1.3000 psychological mark. Canadian labor market details for August showed unemployment rate ticked higher to 7.0% while the number of employed people increased by 26.2k, reversing majority of declines recorded in July. 

Moreover, softer tone surrounding crude oil prices also weighed down on the commodity-linked currency - loonie. Meanwhile, comments from FOMC member Eric Rosengren revived talks of an eventual Fed rate-hike action, sooner rather than later, and triggered a fresh bout of short-covering that provided an additional leg of up-move for the pair. 

Technical levels to watch

From current levels, 200-day SMA near 1.3055-60 region is likely to act as immediate resistance above which the pair seems all set to reclaim 1.3100 handle before heading back towards an important resistance near 1.3150 area. On the flip side, reversal back below 1.3000 handle might now be short-lived and is likely to be bought into near 100-day SMA resistance break-point, now turned important support, near 1.2950 region.