USD/CAD: Closing break above 1.2635/53 to clear the way towards 1.3024 – Credit Suisse

USD/CAD has continued to surge higher, breaking above resistance at 1.2495/2514 to increase the risk of a broader base. Next key resistance is seen at 1.2635/53, which includes the 200-day average, 23.6% retracement of the fall from 2020 and some key price highs, as the Credit Suisse analyst team notes.

Support moves higher to 1.2302

“USD/CAD has surged higher again this morning, breaking above key resistance at 1.2487/2514, which capped the market back in June. With daily MACD accelerating higher and given this latest breakout, we look for a deeper move higher to the major cluster of resistances at 1.2635/53, which includes the 200-day average, a long term retracement level and a cluster of price highs.”

“It’s worth highlighting that a break above 1.2635/53 would complete a major base to turn the broader risks higher, with the next initial levels at 1.2751/64, then 1.2881, with the size of the base suggesting a move to 1.3024 is possible if confirmed.” 

“Near-term support now moves to 1.2422, which ideally holds to keep the risks directly higher. Next support is seen at 1.2347, then 1.2302, below which would now likely leave the market trapped back in a range.”