USD/CAD to climb towards above 1.29 on a break past 1.2844/72 – Credit Suisse

USD/CAD is testing the top of the high-level range at 1.2844/72. A break above here would open up 1.2900/02 next and potentially 1.2951/64, analysts at Credit Suisse report.

Important near-term support zone seen at 1.2684/53

“In light of the magnitude of the recent advance and the climbing daily MACD momentum, we stay biased for 1.2844/72 – the downtrend from the 2021 high and the 78.6% retracement of the December 2021 fall – to be broken for a test of the March high at 1.2900/02 next.”

“Should 1.2900/02 also break, we would see scope for a move back to the very top of a long-term range from Q1 of 2021 at 1.2947/63, which we would look to serve as a crucial barometer for the market’s medium-term direction.” 

“Support moves to 1.2775 and then to 1.2729/28, with a more important near-term support zone seen at 1.2684/53, which ideally holds to maintain the upside pressure. Below here though would support further short-term sideways movement.”