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What is the technical outlook for USD/CAD in the near-term?

Here is their view, courtesy of eFXdata:

Credit Suisse discusses USD/CAD technical outlook and highlights the importance of the 1.2760 for near-term directional bias.

Whilst above 1.2771/60 and more importantly above the upper end of the “wedge” base currently at 1.2689, we keep our bias for further near -term strength in place, reinforced by daily MACD momentum also continuing to move higher. Above 1.2812, we look for another test of  1.2870/81  and 1.2896/2907. Removal of here would see a test of the late December 2020 high at  1.2957, where we expect to see a more concerted effort to cap, although the  “wedge measured objective” is at 1.3004,” CS notes.

“Beneath 1.2689 would instead negate the base and suggest a more direct resumption of the core bear trend, with support seen initially at 1.2686/82,” CS adds.

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