USD/CAD: Scope for a fall to 1.2287 – Credit Suisse

USD/CAD maintains a clear top. Therefore, economists at Credit Suisse still see scope for a break below 1.2455/31 despite the recent stabilization above this level.

Resistance at 1.2608/30 expected to cap

“USD/CAD is back under pressure again and given our view that the broader USD is likely to see a deeper correction lower, we stay biased towards a break below 1.2455/31. Thereafter, we would see scope for a fall all the way to the ‘measured top objective’ at 1.2287, where we would look for a hold to define the bottom end of a broad range.” 

“Daily MACD has crossed into bearish territory and continues to accelerate lower, reinforcing the case for further in-range weakness.” 

“First resistance moves to 1.2571/77, then 1.2608/30, which should now cap the pair. A break above here would negate the top and turn the risks back higher within the range.”