USD/CAD: Resistance at 1.2731/49 continues to cap for a move back lower – Credit Suisse

USD/CAD extended its gains further on Friday, completing a minor base, but with strength remaining capped at the pivotal 55-day average, currently at 1.2731, analysts at Credit Suisse inform.

Key quotes

“We ideally look for 1.2731/49 to ideally cap for a turn back lower and see support initially at 1.2678/61, removal of which would ease the recent upside pressure. Below here can see 1.2587 next, beneath which would negate the small base and see a move back to the current low for the year at 1.2468, just shy of the mid-February 2018 low at 1.2452, where a more concerted effort to hold is expected.” 

“A clear and sustained move below the mid-February 2018 low at 1.2452 would then open the door to the 2018 lows at 1.2255/51 over the medium-term.” 

“Above 1.2749 would suggest an even deeper correction higher than expected and reassert the broader range, with resistance initially seen at 1.2763/66.”