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USD/CAD is losing short-term momentum around the May low and psychological support at 1.2730/00. Support is seen at 1.2689/88, then more importantly at 1.2620. On the flip side, resistance stays at 1.2790/93, per Credit Suisse.

See – USD/CAD: Loonie to hold steady in 2021 – RBC

Key quotes

“USD/CAD remains in its near-term range and is still struggling to pick up short-term momentum, with the daily RSI actually turning up from oversold territory. Hence, we think that there is potential for an extension of the rangebound environment in the near-term.”

“Post this consolidation though, we remain biased lower over the medium-term, as a large ‘head and shoulders’ top still in place. With this in mind, initial support is at 1.2718/13, then back at 1.2689/88, removal of which would see a resumption of the core bear trend. Next key support is seen thereafter at 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 1.2756, then 1.2790/93, which ideally caps again. Beyond here can see a deeper correction higher and a move back to 1.2829/33, removal of which could see a move back to 1.2874/81.”