Credit Suisse discusses USD/CAD technical outlook and maintains a bearish bias targeting a move towards 1.2528.
"With a large “head and shoulders” top still in place we stay based lower and although we are seeing signs of an oversold condition and we look for further direct weakness with support seen initially at 1.2707/00, then 1.2632, removal of which should see a move back to the 78.6% retracement of the 2017/2020 surge at 1.2620, where we would expect to see fresh buyers at first. Big picture, we expect a move below here in due course with support then seen next at 1.2528," CS notes.
"Resistance in contrast moves initially to 1.2749, then 1.2768/70, with 1.2829/33 ideally capping to keep the immediate downside bias intact. Removal of here though could see a move back to 1.2874/81, where we would expect to see another attempt to cap," CS adds.