Credit Suisse discusses USD/CAD technical outlook and highlights the importance of the 1.3104 level for directional bias in the near-term.
"Although another corrective jump higher should not be excluded the market seems to have shifted into a short term range. A close beneath 1.3104 is needed to reinforce the view that the corrective strength is over and the medium -term downtrend is taking back over," CS notes.
"Support is seen thereafter at 1.3088/76, beneath which should allow for a move back to 1.3047/38. Removal of here would then reinforce the bearish bias further for a fall to 1.2994, then medium -term support at 1.2952. Resistance moves initially to 1.3200/08, then back to 1.3256/72, which ideally caps again. Above here though on a closing basis would see a base complete to suggest a more important correction higher, with next important resistances seen at the 50% retracement and 55 -day average at 1.3332/55," CS adds.