Credit Suisse discusses USD/CAD technical outlook and highlights the importance of 1.3440 & 1.3241 levels for directional bias in the near-term.
"USDCAD has seen a sharp rejection from price resistance at 1.3421, just shy of the 61.8% retracement of the June/September fall at 1.3 440. Whilst above the “neckline” to the base at 1.3247/41 though we remain biased for further corrective strength, although we acknowledge that the risk of an early resumption of the core bear trend has increased," CS notes.
"With this in mind, we see resistance initially at the aforementioned 1.3421. 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 1.3496/3529, where we would look for a cap for the medium - term downtrend to then reassert itself. In contrast, a clear and closing break below 1.3247/41 would negate the small base to suggest a direct resumption of the medium -term bear trend, with support seen next at 1.3171/69," CS adds.