Credit Suisse discusses USD/CAD technical outlook and maintains a bearish bias in the near-term.
“USDCAD extends its downmove in early trading today, breaking below the price support and pivotal 78.6% retracement of the June correction higher at 1.3402/3398, in line with the bear ‘wedge’ continuation pattern that is in place. With daily MACD momentum also crossing lower, we stay biased lower and a close below the aforementioned 1.3402/3398 would see next support at the more important 2020 low and retracement support at 1.3331/17, where we would expect to see fresh buyers at first,” CS notes.
“Big picture, the ‘measured wedge objective’ is seen much lower at 1.3206, just shy of a more important support area at 1.3202/3191. Resistance is seen initially at 1.3427, then 1.3486/91, ahead of the 200-day average at 1.3515, which ideally now caps. Above here could see a move back to 1.3539,” CS adds.
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