USD/CAD to see further upside in the near-term – Credit Suisse

USD/CAD reverted sharply higher, completing a minor base to suggest the pair could see further corrective strength in the near-term. Resistance is seen initially at 1.3259/66, then 1.3298, while support moves to 1.3145/43, the Credit Suisse analyst team reports. 

Key quotes

“USD/CAD has seen a strong upswing, completing a very small base, with strength now pausing at the 50% retracement of the fall from late September at 1.3260. With the small base in mind, we shift the short-term bias to the upside and see resistance initially at 1.3259/66, then 1.3273, ahead of 1.3298 – the 61.8% retracement – where we would expect another attempt to hold and ideally see the core bear trend resume.” 

“Support is initially seen at 1.3211, then 1.3193/81, beneath which would ease the immediate upside bias and see a direct move back to 1.3145/43. Removal of here would see 1.3117 next, before a move to the October low at 1.3100/3099. Beyond here would open the door for a fall back to 1.3047/45, removal of which would see the ‘neckline’ to the potential very large ‘head and shoulders’ top and 2020 low at 1.3002/2994 next.”