USD/CAD: Short-term bias turned to the downside – Credit Suisse

USD/CAD broke below 1.3856/3793 to suggest a more important move lower, with the support seen initially at 1.3734 being currently tested, the Credit Suisse analyst team apprise.

Key quotes

“We turn our near-term bias to the downside and see support initially at 1.3734. Removal of here would see a move back to 2019 high at 1.3665, just ahead of the 61.8% retracement of the 2020 surge at 1.3609/08, where we would expect an initial attempt to floor the market.” 

“Resistance moves initially to 1.3805, then 1.3965, ahead of 1.4048, which needs to cap to keep the downside bias intact. Removal of here though would see a move back to the downtrend from late March at 1.4114/19.”