USD/CAD to test the 200-DMA at 1.3509 – Credit Suisse

USD/CAD has not managed to follow through on Thursday’s aggressive sell-off, keeping the market in a short-term consolidation as the loonie remains trapped between 1.3619/32 and the 200-day average at 1.3509, analysts at Credit Suisse briefs.

Key quotes

“Although further rangebound trading should be allowed for at this stage, we remain biased to the downside and look for a fresh test of the 200-day average at 1.3509. Below in due course would see next support at the June low at 1.3486. With a large bearish ‘descending triangle’ continuation pattern still in place and MACD close to crossing lower, we look for a break beneath here in due course as well, which would then complete a bear ‘wedge’ continuation pattern.”

“Resistance is seen initially at 1.3607, ahead of 1.3619/32, which ideally caps once more. A close above here though would see a small base complete to see further corrective strength unfold, with resistance seen next at 1.3686.”