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USD/CAD broke dramatically lower, turning the spotlight back at the 200-day average at 1.3461, per Credit Suisse. 

Read: USD/CAD looks to 1.4000 in three months’ time – Goldman Sachs

Key quotes

“USD/CAD saw a sharp move lower yesterday, removing the 2019 high and 38.2% retracement of the upmove from 2017 at 1.3673/65, as well as the 61.8% retracement of the 2020 surge at 1.3609/08 to reinforce our bearish outlook.”

“Further weakness is expected with support seen initially at 1.3500, ahead of the ‘measured pattern objective’ and 200-day average at 1.3462/61, where we would expect to see a pause at first. Beneath here thought would see support next at 1.3365, ahead of 1.3331/15.” 

“Near-term resistance moves to 1.3585, then 1.3631, ahead of 1.3802. Above here would see resistance next at the 1.3851/56 breakdown point, which ideally caps to keep the risks directly lower.”