Credit Suisse discusses USD/CAD technical outlook and highlights the importance of 1.2145 for near-term directional bias.
"A break above 1.2117/45 would confirm a deeper correction back higher, which is the recent high and 21 -day exponential average. Above here would open up a move to 1.2203 next, then 1.2253, with 1.2318/52 the deepest correction we can envisage which includes the important 55 -day average," CS notes.
"In contrast, a direct close below 1.2012/00 would still reassert the broader downtrend and end thoughts of a correction, with a weekly close below 1.2060/48 then needed to confirm a multi - year “double top”, as well as dramatically reinforce our medium term bearish outlook, with the next level at 1.1916. Bigger picture, we still scope for an eventual move to 1.1424/1318," CS adds.