Credit Suisse discusses USD/CAD technical outlook and stays bearish in the medium-term but will turn neutral in the near-term on a daily close above 1.3445.
"USDCAD has seen a strong reversal higher from the pivotal 2020 low and retracement support at 1.3331/15, although not managing to close above the key 1.3445 high and thus avoiding a minor base and suggesting only an extension of the current consolidation range.
With a bear ‘wedge’ continuation pattern still in place, we stay biased to the downside over the medium term and look for a close below here in due course, with support seen thereafter at 1.3272, ahead of 1.3233. Big picture, the ‘measured wedge objective’ is seen lower at 1.3206, just shy of a more important support area at 1.3202/3191," CS notes.
"Resistance is seen initially at 1.3445/60, which now ideally caps to keep the immediate downside bias intact. Above here though would see the completion of a small base and see resistance next at 1.3486/91 and 1.3524. We would expect the market to find a cap here and see a move back lower if reached," CS adds.