The USD/CAD pair has managed to recover back above the recent and mid-February 2018 lows at 1.2468/41 as expected after an intraday tested lower. Economists at Credit Suisse look for further choppy back and forward price action to unfold in the near-term.
See: USD/CAD to move lower for a test of the 1.2385 mark – DBS Bank
Key quotes
“With daily RSI momentum already close to oversold territory, we look for modest upside to unfold to maintain the choppy back and forward price action in the near term, with resistance seen at 1.2513, then 1.2573.”
“A direct and closing break below the crucial recent and mid-February 2018 low at 1.2468/41 would suggest an acceleration of the core bear trend and see support next at 1.2402/00, then 1.2348/32, ahead of 1.2300. Beyond here would see the potential uptrend from Main 2015 at 1.2277, just shy of the 2018 low at 1.2255, where we would expect to see a more concerted effort to hold.”
“Above 1.2573 would further ease the immediate downside bias and see a move to 1.2683/86 next. Removal of here would open up to a test of the 55-day average, currently at 1.2686.”
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