USD/CAD to recover towards the 1.2950/3030 zone – Credit Suisse

USD/CAD has been capped and fallen sharply from major medium-term resistance at 1.2950/3024. However, key support at 1.2645/2608 should hold, in the opinion of the Credit Suisse analyst team.

USD/CAD finds a floor at 1.2645/08

“The market has found a floor at more important support at 1.2645/08 and we look for a deeper tactical recovery from here, with first short-term resistance at 1.2836/48. Thereafter, we lean towards a breakout above the major 1.2950/3030 zone, given that medium-term momentum remains bullish and given that medium-term moving averages are all now rising, unlike earlier this year, which supports the case for an eventual breakout.” 

“Key support remains at 1.2645/08, which we look to hold. Whilst not our base case, a closing break below here would complete a clear top to turn the risks back lower within the range, with next support at 1.2500/2491.”