USD/CAD: Break beneath 1.2452 to open up the way to 1.2255 – Credit Suisse

USD/CAD extended its weakness on Friday and is now testing the mid-February 2018 low at 1.2452, which analysts at Credit Suisse expect to prove a tough barrier into Monday’s close. Below though would suggest an acceleration of the core bear trend.

Key quotes

“USD/CAD continued to move lower on Friday, with the market now testing the mid-February 2018 low at 1.2452. We still look for a more concerted effort to hold here into today’s close to maintain the choppy back and forward price action. However, a direct and closing break lower would instead suggest an acceleration of the core bear trend and see support next at 1.2402/00, then 1.2348/32, ahead of 1.2300.” 

“Beyond 1.2300, would see the potential uptrend from Main 2015 at 1.2277, just shy of the 2018 low at 1.2255, where we would expect to see a more concerted effort to hold.” 

“Resistance is seen initially at 1.2494, then 1.2573, above which would now ease the immediate downside bias and see 1.2683/86 next. Removal of here would open up to a test of the 55-day average, currently at 1.2692.”