USD/CAD to confirm a bearish triangle on a break below the 200-DMA at 1.3492 – Credit Suisse
|The USD/CAD pair edges lower today, around mid-1.3500s, as the loonie broke yesterday below the potential early June uptrend to reinforce the view of a bear ‘wedge’ continuation pattern, which would be confirmed below 1.3492/86, the Credit Suisse analyst team reports.
Key quotes
“USD/CAD saw the expected collapse, breaking below the potential uptrend from early June and reinforcing the potential for a bear ‘wedge’ continuation pattern.”
“We expect further weakness to unfold, also in line with the existing large bearish ‘descending triangle’ continuation pattern. With this in mind, we see support initially at 1.3552, then 1.3528, ahead of a fall back to the pivotal 200-day average and June low at 1.3492/86. Removal of here in due course would then trigger the pattern to suggest the core bear trend is resuming, with support seen thereafter at 1.3452.
“Resistance is initially seen at the aforementioned early June potential uptrend at 1.3593, which also ideally caps to keep the immediate downside bias intact. Above here would suggest a deeper correction higher with resistances seen next at 1.3628 and 1.3648.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.