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USD/CAD has accelerated lower, breaking beneath the key 1.2783 October 2018 low. The pair sees next support at 1.2707/00, ahead of 1.2620, the Credit Suisse analyst team reports.

Key quotes

“USD/CAD saw a sharp move lower on Thursday as the pair saw a sustained break beneath the 1.2783 October 2018 low. With a large ‘head and shoulders’ top still in place, we stay based lower and although we are seeing signs of an oversold condition and we look for further direct weakness with support seen initially at 1.2707/00, then 1.2632, 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.” 

“Big picture, we expect a move below 1.2620 in due course with support then seen next at 1.2528.” 

“Resistance moves initially to 1.2768/70, with 1.2829/33 ideally capping to keep the immediate downside bais intact. Removal of here though could see a move back to 1.2874/81, where we would expect to see another attempt to cap.”