USD/CAD: Strenght fades, next support awaits at 1.3482/73 – Credit Suisse

USD/CAD reversed back lower yesterday, reinforcing the view that strength was corrective and the focus is on the support seen at 1.3482/73, the Credit Suisse analyst team apprise.

Key quotes 

“We expect further weakness to unfold and see support initially at 1.3482/73, removal of which would see the small base negated and a fresh attempt at 1.3398, then 1.3365/57, ahead of the ‘neckline’ to the November/December 2019 base and 78.6% retracement of the 2020 surge at 1.3331/16, which may continue to prove a tough barrier. Removal of here though would then see the downtrend accelerate further, with support next at 1.3287.” 

“Resistance is seen at 1.3586, then 1.3637, ahead of 1.3686, which ideally caps to maintain the immediate downside bias. Removal of here though could see a move back to the more important breakout point at 1.3851/56, which ideally then caps any further upside.”