USD / CAD slowed down the bearish rally and is now facing significant resistance on the bullish path at the 1.2745 area, Credit Suisse analysts warn.
Key statements:
“USD / CAD has failed to see a close below the crucial 1.2686 / 82 level, reversing higher and completing a small bullish ‘hammer’ to suggest more short-term gains.”
“We see room for a move back to the key short-term average at 1.2741 / 46, with the possibility of breaking above the 55-day average at 1.2770, which will then ideally limit for a move back to the downside. Following this upside setback, we look for weakness to resume and look for an eventual close below the crucial lows of 1.2686 / 82”.
“A clear and sustained close below 1.2686 / 82 would cause the previous base to decline, with support seen thereafter at the back of the December 2020 downtrend, currently at 1.2640.”
“Above 1.2770 / 83 the pair would point to a deeper correction to the upside, with resistance thereafter at 1.2845, and more important at 1.2881. Up here a larger floor would be completed, however this is not our preferred setting. “
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