USD/CAD sits near multi-week tops, just above 1.3400 mark amid stronger USD

A combination of factors assisted USD/CAD to gain some follow-through traction on Thursday.
Coronavirus jitters, the prevalent risk-off mood continued benefitted the safe-haven greenback.
Sliding crude oil prices undermined the loonie and remained supportive of the positive move.

Haresh Menghani FXStreet

The USD/CAD pair held steady near multi-week tops, with bulls looking to build on the momentum further beyond the 1.3400 round-figure mark.

The pair added to the previous day's strong positive move and gained some follow-through traction through the first half of the trading action on Thursday. The uptick was supported by sustained US dollar buying and a weaker tone surrounding crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie.

Worries that the second wave of coronavirus infections threatened to derail the global economic recovery and continued weighing on investors' sentiment, which, in turn, boosted the greenback's safe-haven status. The USD bulls largely shrugged off warnings by various Fed officials, stressing the need for more fiscal stimulus to sustain the recovery.

Meanwhile, concerns that the second wave of COVID-19 cases could lead to the return of severe lockdown and travel restrictions dampened prospects of any meaningful recovery in the fuel demand. Jitters over demand and economic outlook weighed on crude oil prices, which fell around 1% on Thursday and remained depressed below the key $40.00 psychological mark.

Thursday's US economic docket highlights the release of Initial Weekly Jobless Claims and New Home Sales data. This, along with a scheduled testimony by the Fed Chair Jerome Powell and Treasury Secretary Steven Mnuchin, will influence the USD price dynamics and produce some meaningful trading opportunities later during the North American session.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3407
Today Daily Change	0.0020
Today Daily Change %	0.15
Today daily open	1.3387

Trends
Daily SMA20	1.3167
Daily SMA50	1.3264
Daily SMA100	1.3476
Daily SMA200	1.3523

Levels
Previous Daily High	1.3387
Previous Daily Low	1.3294
Previous Weekly High	1.3247
Previous Weekly Low	1.3128
Previous Monthly High	1.3451
Previous Monthly Low	1.302
Daily Fibonacci 38.2%	1.3351
Daily Fibonacci 61.8%	1.333
Daily Pivot Point S1	1.3325
Daily Pivot Point S2	1.3263
Daily Pivot Point S3	1.3233
Daily Pivot Point R1	1.3417
Daily Pivot Point R2	1.3448
Daily Pivot Point R3	1.351

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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