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The USD/CAD pair has seen a sharp rejection from the crucial resistance at 1.3254/72 with support seen at 1.3128, economists at Credit Suisse report.

Key quotes

“USD/CAD has not managed to follow through on the upside as expected and has seen weakness take over again in line with our medium-term bearish bias. With this in mind, we see support initially at 1.3137, beneath which would see a move back to 1.3128 and 1.3119. Beyond here would see a test of the back of the broken March downtrend at 1.3055. A close below here would further reinforce the view that the medium -term downtrend is taking back over. Support is seen next at 1.3047/38, removal of which would reinforce the bearish bias further for a fall to 1.2994, then medium -term support at 1.2952.” 

“Resistance moves initially to 1.3170, then 1.3183, ahead of 1.3247. Above here would see a fresh test of 1.3254/72, which ideally cap s once more. Above here though on a closing basis would see a base complete to suggest a more important correction higher, with next important resistances at 1.3304.”