USD/CAD approaches the 1.3365 support, back under pressure – Credit Suisse

USD/CAD is back under pressure as the loonie maintains the break below the 1.3465 200-day average, with next support seen at 1.3365/57, the Credit Suisse analyst team report.

Key quotes

“The market is now pushing towards the pivotal 50% retracement of the 2017/2020 surge and recent lows at 1.3365/57. Although the broader downtrend remains well supported, with daily RSI momentum still in heavily oversold territory, further short-term consolidation should be allowed for at this point.” 

“Removal of 1.3365/57 in due course though would then see support next at the ‘neckline’ to the November/December 2019 base and 78.6% retracement of the 2020 surge at 1.3331/15.”

“Resistance moves 1.3428, then to the 200-day average at 1.3465, which ideally holds to keep the downside bias intact. Above here would see resistance at 1.3513, then 1.3572/85, where we would expect to see another attempt to cap.”