USD/CAD to trend higher over the next month towards the 1.2639/53 zone – Credit Suisse
|USD/CAD stays biased higher over at least the next month in the view of the Credit Suisse analyst team. Next resistance is seen at 1.2514, then the more important cluster at 1.2639/53.
USD/CAD has broken above the 55-DMA, which marks an important trend change
“USD/CAD surged higher again on Friday after breaking above 1.2266/61, which included the important 55-day average. The 55-day average had essentially capped the market all year and so the sustained move above here marked an important change of trend for the next 1 -2 months, reinforced by the cross higher in daily MACD.”
“Next resistance is seen at 1.2500/14, which may stall the market at first, with the potential for a move back to the major cluster of resistances at 1.2639/53, which is a major medium to long-term inflection point, particularly with the 200 -day average just above at 1.2711.”
“Near-term support moves to 1.2435/17, then 1.2265/61, which now ideally holds to keep the 1-month risks higher. A quick close below here would suggest the market is moving into a choppy broad range, with next resistance at 1.2156/45.”
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