USD/CAD: Break above 1.3020/41 to clear the way for further gains – Credit Suisse

USD/CAD has ended the correction and is challenging the 2021 high at 1.2947/63. However, only above 1.3020/41 would open up a medium-term move higher, economists at Credit Suisse report.

Significant support is seen at 1.2716/2675

“Though a more severe pullback cannot be ruled out completely, with the medium-term MACD now shifting higher, we look for 1.2947/63 to eventually break and open the door to test the 38.2% retracement of the 2020/21 downtrend and the 200-week moving average at 1.3020/41.” 

“Only a sustained break above 1.3020/41 would confirm that a new medium-term uptrend has emerged and see scope to challenge the mid-November 2020 high at 1.3172.” 

“Significant support is seen at 1.2716/2675. A break below here would shift the near-term risk back lower again and warn of weakness back toward the lower end of the long-term range.”