USD/CAD: Recent strength seen as a correction, eventual retest of 1.3225/03 expected – Credit Suisse

USD/CAD has extended its rejection from 1.3225/03. However, analysts at Credit Suise continue to look for an eventual break below this level.

Weakness to be eventually reasserted

“Whilst we see room for the recovery to extend further reinforced by daily MACD turning higher and daily RSI unwinding from oversold levels, this move higher is seen as a near-term correction within the broader bearish environment.”

“Our bias is for the weakness to be eventually reasserted, though with a break below 1.3298 needed to retest the still intact key support at 1.3225/03, a stable close below which would signal further setback to 1.3021/1.2986.” 

“We look for the neckline to the recent top and the recent price high at 1.3493/1.3571 to ideally provide a better near-term ceiling to prevent a stronger recovery.”