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USD/CAD rose smartly last week gaining 1.5% as the second wave of the pandemic in Europe and the United States revived the general dollar safety-trade though the fear and the greenback remained far from the March panic high. Despite the sharp ascent, the pair remains below the 1.3400 level, a stubborn resistance, as FXStreet’s Analyst Joseph Trevisani notes. 

Key quotes

“It is unclear whether this round of the pandemic will prompt governments to the same stringent and economy-destroying measures that transpired in March and April. At the moment it appears not and the decision point is probably a few days or weeks ahead and will depend on the success of the various health systems in dealing with the new cases.”

“The bias in the USD/CAD has shifted to the upside, but it is not the panic rush of the spring as the full closure of economies do not appear to be contemplated.”

“Technically the resistance at 1.3400 remains paramount as that is where the September attempt to move higher failed. If that can be crossed then the break should acquire the momentum to reach 1.3500 and higher.”