USD / CAD is experiencing a dramatic pullback from late last week’s high of 1.2950. Credit Suisse economists see room for further weakness towards the 38.2% retracement of the June / August uptrend at 1.2590, and potentially the 200-day average at 1.2564 / 53.
Key statements:
“The weakness may extend further to the 38.2% retracement of the June / August rally at 1.2590. In fact, we see scope for overshooting below the uptrend from the June low and the 200-day average at 1.2564 / 53, but with a better bottom here. “
“A close below the 200-day average at 1.2553 would suggest that the base-building effort is probably over, with support seen next at 1.2479 / 74.”
“Resistance is seen at 1.2662 initially, above which it may ease the immediate bearish bias for a rally back to 1.2711 ahead of 1.2748 and then 1.2779. “
“A comeback above 1.2836 is needed to reaffirm the uptrend again for a move to 1.2950 / 57 and finally 1.3024.”
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