USD/CAD resumes its uptrend towards the 1.2807 July high – Credit Suisse

USD/CAD maintains its base above 1.2608. The pair has topped 1.27 and economists at Credit Suisse look for strength back to the 1.2807 July high.

See – USD/CAD: Loonie's positive outlook remains compelling – MUFG

Support at 1.2599 to hold

“USD/CAD maintains its impulsive move higher after the break above its 200-day average and importantly its 1.2608 recent high to mark the completion of a near-term base. With the market also maintaining a much larger multi-month base this should confirm that the uptrend is resuming.” 

“We stay biased higher for a retest of the 1.2807 high. Beyond this latter level can reinforce a basing story with resistance seen next at the highs for the year at 1.2870/81. The ‘measured base objective’ still projects a move to 1.3024, also the 38.2% retracement of the 2020/2021 collapse where we would look for a firmer ceiling.” 

“Near-term support moves to 1.2687, then 1.2649/43, with yesterday’s low at 1.2599 now ideally holding to keep the immediate risk higher.”