USD/CAD: Downtrend resistance at 1.3153 caps with support seen at 1.3038 – Credit Suisse

USD/CAD has shifted into a near-term range after staying capped at the key 1.3153/67 resistance level, according to strategists at Credit Suisse. The loonie is trading near daily highs around the 1.3140 mark as of writing. 

Key quotes

“The rebound higher in USD/CAD remains capped by the 23.6% retracement the fall from June, price resistance and March downtrend at 1.3153/67, with the market now shifting into a near-term range.”

“Support moves initially to 1.3076, but with a break below 1.3038 needed to reassert a bearish bias again for a fall back to 1.2994, then medium-term support at 1.2952. Beneath here would suggest we are seeing the formation of a significant and long-lasting top, with support seen next at the downward sloping trendline from February 2019, currently seen at 1.2863, with the 78.6% retracement of the 2017/2020 bull trend seen at 1.2620.” 

“Above 1.3153/67 would see the downtrend break to suggest a more important low is already in place with resistance seen next at 1.3205, then the late August high at 1.3245.”