USD/CAD has accelerated higher for a conclusive break above the major cluster of resistances at 1.2632/53, which includes the 200-day average. This sees a major base established. Analysts at Credit Suisse see scope for a move to 1.3024 – the 38.2% retracement of the 2020/2021 decline.

See – USD/CAD: The loonie’s highs are in the rearview mirror – RBC

The close above 1.2653 finally confirms a large base

“USD/CAD has accelerated dramatically higher for a conclusive break and close above the major cluster of resistances at 1.2632/53, which includes the 200-day average, the 23.6% retracement of the entire 2020/2021 bear trend and a cluster of price highs. This has seen a major base established as looked for to turn the broader risks higher.” 

“We see resistance at the highs for the year at 1.2870/81 and although a fresh cap here should be allowed for, we look for a break in due course for a move to 1.2957/59 and then 1.3024 – the 38.2% retracement of the entire 2020/2021 fall. Our bias would be for this to then prove a tougher initial barrier.” 

“Near-term support moves to 1.2732, below which can ease the immediate upside bias for a fall back to 1.2689 initially, then more likely the 200-day average and yesterday’s low at 1.2626/08, but with this now ideally holding.”

 

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