USD/CAD set to break below the 1.2365 support – Credit Suisse

USD/CAD is expected to see some consolidation above 1.2365, however, the Credit Suisse analyst team core bias stays bearish, with resistance at 1.2455 expected to cap.

See – USD/CAD: Loonie to enjoy the combination of fiscal stimulus and a hawkish BoC drift – HSBC

Next major support at 1.2365

“With a large bearish ‘outside day’ and bearish cross lower in daily MACD momentum still in place, we stay bearish, with a break below 1.2365 expected post a lengthier pause. With this in mind, the next major support below here is seen at a major corrective price low at 1.2265/51, 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.” 

“Near-term resistance stays at 1.2455/73, which we expect to cap on any rebound from 1.2365. Above this resistance would suggest further ranging though, which is not our base case.”