Home USD/CAD hovers around May 2018 low at 1.2730, next major support seen at 1.2620 – Credit Suisse
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USD/CAD hovers around May 2018 low at 1.2730, next major support seen at 1.2620 – Credit Suisse

USD/CAD continues to hover around the pivotal May 2018 low at 1.2730, but the overall core downtrend remains intact, with next major support at 1.2620, analysts at Credit Suisse report.

Key quotes

“With short-term momentum waning, further near-term sideways trading is likely at first. Post this consolidation, we remain biased lower over the medium-term, as a large ‘head and shoulders’ top still in place.”

“Support is seen initially at 1.2700/1.2699, then back at 1.2688, removal of which should see a move back to the 78.6% retracement of the 2017/2020 surge at 1.2620, where we would expect to see fresh buyers at first.”

“Resistance moves initially to 1.2772, then 1.2790/93, where we would expect a first attempt to hold. Beyond here can see a move back to 1.2829/33, removal of which could see a move back to 1.2874/81, where we expect to see another attempt to cap.”

 

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