USD/CAD: Return above 1.2846/53 needed to retest the March high at 1.2900/15 – Credit Suisse

USD/CAD has failed to break medium-term resistance starting at 1.2900/15. However, economists at Credit Suisse maintain a positive outlook whilst above 1.2684/53.

Rejection of the March high at 1.2900/15 still seen as a correction

“USD/CAD is falling sharply back lower again, with next near-term support now seen at 1.2684/53. We retain our bullish bias whilst above this area, though a move back above 1.2846/53 is needed to relieve the immediate downward pressure and pave way for a renewed test of the March high at 1.2900/15.” 

“Above March high at 1.2900/15 would see scope to challenge the 2021 high at 1.2947/67, which we view as a key medium-term barometer for the market.” 

“Should 1.2684/53 be broken, this would likely act as a signal that the market is mean-reverting back within the long -term range and would lead us to neutralise our positive bias. With this in mind, support would then be seen at 1.2567, ahead of a more major support at the uptrend from Q2 2021 at 1.2458/26.”