USD/CAD posted a bullish “key reversal day” after holding above key long-term support at 1.2060/47, which suggests a correction higher is likely. A break above 1.2190/92 would cement a short-term base to confirm, according to the Credit Suisse analyst team.
Next support at 1.2062/47
“USD/CAD has finally succumbed to the recent fall in risk sentiment, completing a bullish ‘key reversal day ‘ from support at 1.2062/47. This suggests a near term correction back higher, however, the market remains in a strong medium-term downtrend and post this correction, we look for an eventual break below 1.2062/47, with a weekly close below here completing a multi-year ‘double top’ to dramatically reinforce our medium-term bearish outlook, with the next level at 1.1916.”
“Near-term resistance stays at 1.2190/92, above which would reinforce the corrective potential, with the next levels at 1.2278/91, then more importantly at 1.2351/65, which we look to cap any a deeper rebound back higher.”