The Canadian dollar has been under significant pressure from its U.S. counterpart. What is the technical outlook for USD/CAD?
Here is their view, courtesy of eFXdata:
Credit Suisse discusses USD/CAD technical outlook and maintains a bullish bias targeting a move towards 1.4349 Ahead current year high around 1,4668.
“The market has now broken above 1.4166/83 – the 38.2% retracement of the March/April downswing and recent high to reinforce our bullish outlook, with resistance next seen at 1.4213, then 1.4262. Removal of here would see the upswing extend even further up to 1.4349, where we would expect to see fresh selling at first. Above in due course though would trigger a large bullish ‘wedge’ continuation pattern, in line with our bigger picture view that the market is set to see a move back to the current year for the year at 1.4668,” CS notes.
“Support moves to 1.4114, then 1.3998, removal of which would negate the ‘outside day’ and see a fall back to 1.3856, ahead of the 50% retracement and 2017 high at 1.3810/3793, which ideally floors any setback,” CS adds.
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