USD/CAD loses the key 1.2365 support, next stop at 1.2256/61 – Credit Suisse

The USD/CAD pair has seen a clear break below the 1.2365 low, further reinforcing the Credit Suisse analyst team’s bearish outlook. The next major support is at 1.2256/51.  

See: USD/CAD to extend its slump as the BoC offers a much more hawkish disposition – TDS

Momentum is picking up sharply

“USD/CAD has seen a very sharp fall below important support at the 1.2365 2021 low, in line with the large bearish ‘outside day’ and recent bearish cross lower in daily MACD momentum.”

“We stay bearish, with the next major support below here seen at a major corrective price low at 1.2256/51, which is similarly expected to prove a tough initial barrier. Nevertheless, with a major long-term top in place, we still see scope for an eventual move to 1.2062, the 2017 low.”

“We now think the market should be capped below the 1.2365 broken low on any rebounds back higher, with the next level above here at 1.2455.”