Credit Suisse discusses USD/CAD technical outlook and maintains a bullish bias in the near-term.
"USDCAD saw another test and hold of the pivotal support zone seen at the current range lows, 50% retracement of the 2020 surge and ‘neckline’ to the large base at 1.3856/3793, which we continue to look to provide a solid floor the market.
We therefore look for a renewed swing higher within the range, with resistance initially seen at 1.4080/89, ahead of 1.4114/17. Above here would see resistance at 1.4141/47, ahead of 1.4173, removal of which would negate the previous bearish ‘outside day’ and reinforce the anticipated upswing, with resistance then seen at the upper end of the range at the April highs at 1.4262/65, where we would expect to see fresh sellers at first," CS notes.
"In contrast, a clear and conclusive break below 1.3793 would turn the trend back lower and see weakness extend further, with support seen at 1.3734 next," CS adds.