USD/CAD to approach 1.3750-1.3800 resistance, risk-aversion returns
|Risk consideration will continue to provide the analytical framework for the USD/CAD, which opened at 1.3608 last week to finish on Friday at 1.3687. The loonie is trading at 1.3658 today and is set to remain strong the week ahead, according to FXStreet’s analyst Joseph Trevisani, who notes how the pair is approaching the 1.3750 and 1.3800 resistances.
Key quotes
“It seems unlikely that markets will return to the full-bore panic of March but the dollar advantage will remain until it is clear that the new higher caseload will not prompt another round of economic closures.
“States and localities in the US appear far better able to handle the hospitalization rates this time around but background nervousness will continue to infect markets and support the USD/CAD.”
“There is a sharp divergence in the moving averages. The 21-day is still beholden to the decline from the pandemic panic ranges above 1.3900 and at 1.3555 it was crossed on Wednesday during the week's largest climb. The 100-day at 1.3796 reinforces the 1.3800 resistance line and the 200-day at 1.3487 is a distance backstop for support at 1.3525.”
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