USD/CAD: Further corrective upside with resistance seen at 1.3440/60 – Credit Suisse

USD/CAD maintains a base to suggest further corrective strength to the medium-term bear trend, with the “measured base objective” at 1.3496/3525, per Credit Suisse.

Key quotes

“USD/CAD has seen the recent upswing come to a temporary pause ahead of the 61.8% retracement of the June/September fall at 1.3340, in line with the broader BBDXY index. Post this near-term consolidation though, we look for an extension of the current corrective phase and see resistance initially at 1.3365, then 1.3418/21, ahead of the aforementioned 1.3340. Removal of here would expose the late July highs at 1.3451/60 next, ahead of the ‘measured base objective’ and 200-day average at 1.3496/3525, where we would look for a cap for the medium-term downtrend to then reassert itself.” 

“Support moves initially to 1.3339, then 1.3326, ahead of 1.3294/84, beneath which would ease the immediate upside pressure and see a move back to 1.3247/41. Only a close below here though would negate the small base to suggest a more direct resumption of the medium-term bear trend.”