USD/CAD to advance nicely towards 1.4097 – Credit Suisse

USD/CAD’s rise has slowed, and the market has entered a consolidation. Nonetheless, the core uptrend remains intact, and analysts at Credit Suisse continue to look for a move to 1.4097.

Broader uptrend remains strong

“Whilst a minor bearish divergence in daily RSI warns of a potentially lengthier correction, the broader uptrend remains strong and with our bullish USD and bearish Brent Crude Oil views in mind, we continue to look for an eventual resumption of the recent upside.” 

“Resistance is seen at the highs from last week at 1.3832/38, which we look to be broken to reassert strength and trigger a move to 1.4097 – the 78.6% retracement of the 2020/21 downtrend.” 

“We look for support at the recent price lows at 1.3603/01 and then at the 13-day moving average at 1.3560 to try to hold any sharper move lower to prevent a lengthier downside correction.”