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USD/CAD has reverted back lower from the crucial 32.8% retracement of the June/September fall at 1.3270 and the loonie is pressuring against the back of the broken March downtrend at 1.3129. A close beneath this level is set to reinforce thoughts that the medium-term downtrend is taking back over, according to the Credit Suisse analyst team.

Key quotes

“USD/CAD remained capped at the crucial 32.8% retracement of the June/September fall at 1.3270 as expected on Wednesday, completing a minor intraday top to leave the market pressuring the back of the broken March downtrend at 1.3129.” 

“A close beneath 1.3129 would reinforce the view that the setback is over and that the medium-term downtrend is taking back over. Support is seen thereafter at 1.3088/76, beneath which should allow for a move back to 1.3047/38. Removal of here would then reinforce the bearish bias further for a fall back to 1.2994, then medium-term support at 1.2952.” 

“A move back above 1.3270 in contrast would see a base complete to suggest a more important correction higher, with next important resistances see.”