USD/CAD saw a rollercoaster session on Friday and whilst the sharp setback can extend further yet, weakness is still seen as corrective by the Credit Suisse analyst team. They look for support at 1.2649/43 to ideally hold.
Support at 1.2649/43 to hold with resistance seen at 1.2810
“We see scope for weakness to extend further with support seen next at 1.2720 ahead of 1.2687 and then the 13-day exponential average and price support at 1.2649/43. We would look for an attempt to find a floor here.”
“A break below the 1.2649/43 region would suggest weakness can extend further to the 38.2% retracement of the June/August rally at 1.2590. With the uptrend from the June low not far below at 1.2554, we would look for a better floor here.”
“Resistance is seen at 1.2782 initially, then 1.2810, with a break above 1.2836 needed to reassert an upward bias again for strength back to 1.2950/57 and eventually the ‘measured base objective’ at 1.3024, also the 38.2% retracement of the 2020/2021 collapse.”