USD/CAD: Break below 1.2062/48 to trigger a severe downfall – Credit Suisse

USD/CAD continued lower again on Monday, in contrast to other commodity currencies. The pair is honing in on key long term support at 1.2062/48, below which would complete a major long-term “double top”, as the Credit Suisse analyst team notes.

Resistance stays at 1.2252/68

“With a major medium-term top in place and medium term momentum reaccelerating, we still see scope for a move to 1.2062/48, the 2017 low and 50% retracement of the rise from 2011.”

“Whilst we expect the 1.2062/48 region to be a tough initial barrier, it’s worth highlighting that a weekly close below here would complete a multi-year ‘double top’ to dramatically reinforce our medium-term bearish outlook.” 

“Near-term resistance stays at 1.2192, before 1.2252/68, then more importantly at 1.2351/65, which we look to cap any unexpected rebounds back higher.”