USD/CAD set to break below long-term support at 1.2062/47 – Credit Suisse

The USD/CAD pair has shifted into a short-term range between key long-term support at 1.2062/47 and short term resistance at 1.2190/2206. Analysts at Credit Suisse stay bearish though – looking for an eventual break below the aforementioned support.

USD/CAD remains in a near-term consolidation phase above 1.2062/47

“Post this sideways consolidation phase, we look for a resumption of the strong medium term downtrend and an eventual break below 1.2062/4 7. A weekly close below here would complete a multi - year ‘double top’ to dramatically reinforce our medium term bearish outlook, with the next level at 1.1916.” 

“Near-term resistance stays at 1.2190/2206, above which would reassert the corrective potential, with the next levels at 1.2262/80, then more importantly at 1.2350/65, which we look to cap any deeper rebound back higher.”