The Canadian dollar is poised to record its first weekly gain in a month. What is the technical forecast for the pair?
Here is their view, courtesy of eFXdata:
Credit Suisse discusses USD/CAD technical and flags a scope for a bear wedge pattern targeting a move towards 1.3491/86.
“USDCAD has failed to follow through on its recent close above the 1.3686 high USDCAD which reinforces the view of an extension of the consolidation range and turn our thoughts towards the potential for a bear ‘wedge’ continuation pattern, which would reinforce our bias for break lower in due course as well as the existing large bearish ‘descending triangle’ continuation pattern that is still in place. With this in mind, we see support initially at 1.3575, ahead of the pivotal 200-day average at 1.3491/86, beneath which would trigger the pattern to suggest the core bear trend is resuming,” CS notes.
“In contrast, a close above 1.3686 would see the correction higher continue, with 1.3716/19 the next resistance, above which should see a move back to the more important breakout point and 55-day average at 1.3828/56, which ideally caps any further upside if reached,” CS adds.
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