USD/CAD: Current bounce seen as temporary, expected fall back to 1.3116, then 1.2993/80 – Credit Suisse

USD/CAD has completed a top to warn of a more significant turn lower, economists at Credit Suisse report.

Resistance at 1.3387 to cap to maintain the top

USD/CAD has broken key price support and the 38.2% retracement of the 2021/2022 uptrend at 1.3227/25 which in our view marks a top and important change of trend lower. 

The current bounce is thus seen as temporary and corrective and we look for this to be followed by a fall back to 1.3116, then the 50% retracement and uptrend from 2021 at 1.2993/80. Whilst we would look for a floor to be found here, should weakness directly extend, we would see support next at 1.2760. 

Resistance at 1.3387 ideally caps to maintain the top.