USD/CAD: Downtrend resumes towards key support at 1.2952 – Credit Suisse

USD/CAD has broken clearly below 1.3135/33 this morning and now trades near daily lows at 1.3052. Next supports at 1.3057/2952 may prove resilient, according to economists at Credit Suisse.

Key quotes

“USD/CAD has broken below its recent range lows at 1.3135/33, which suggests the downtrend is resuming for a move back to the 61.8% retracement of the entire 2017/2020 upmove at 1.3057. We expect to see a lengthier pause here, particularly with another key support just below at the 1.2952 price low. Should a lengthier pause indeed be seen and particularly a rebound, a subsequent breakdown below these levels would then complete a particularly compelling long-term top, in line with other USD pairs.” 

“Near-term resistance at the 1.3133/35 breakdown point now ideally caps to keep the risks directly lower, with next resistance above here at the much flagged 13-day exponential average at 1.3191, which remains a key short term barometer.”