USD/CAD: Close above 1.3977/87 to clear the way toward 1.4097 – Credit Suisse

USD/CAD closed on a fresh new high on Friday, but near-term momentum remains weak, which warns of a near-term consolidation. However, a close above 1.3977/87 would shift the risk back higher, analysts at Credit Suisse report.

Scope for further ranging

“The near-term momentum picture remains weak and with bearish divergence in daily RSI and signs of daily MACD potentially rolling over as well, we stay cautious in the near-term.” 

“Meaningful near-term support remains seen at the 13-day exponential average at 1.3737/28 and then at the recent price lows at 1.3702/01, which we look to hold an attempt to move lower to avoid a potentially deeper corrective move to 1.3502/01.”

“Resistance remains seen at the recent price high at 1.3977/87 initially, above which would likely re-establish near-term strength and put the market on the path to the 78.6% retracement of the 2020-21 downtrend at 1.4097.”