USD/CAD: Resistance at 1.3421 caps the pullback – Credit Suisse

USD/CAD is seeing a deeper pullback as trades around 1.3390 after reaching its lowest level since late February earlier last week, although strength stays seen as corrective for now and analysts at Credit Suisse look for resistance at 1.3421 to ideally cap.

Key quotes

“USD/CAD extended its correction higher, in line with daily MACD momentum now also breaking higher and above 1.3383 can see a deeper rebound to test the downtrend from March, 21-day exponential average and 38.2% retracement of the June/August fall at 1.3418/21, but we look for this to then ideally cap and for the core bear trend to resume.”

“Above 1.3421 though would see the downtrend break to increase the threat of a small base, although this would only be confirmed above 1.3460, with resistance next at 1.3486/91.”

“Support is seen at 1.3368 initially, then 1.3285/67, below which should see bearish pressure resume with support then seen next at 1.3233 and then more importantly at 1.3206/1.3191.”