USD/CAD to hold above 1.2535/28 for a move back higher – Credit Suisse

USD/CAD has broken below retracement support at 1.2591 to leave the pair right on key moving average supports at 1.2535/28 ahead of payrolls. This region is set to hold, according to the Credit Suisse analyst team.

USD/CAD falls right to key moving averages at 1.2535/28 ahead of NFP

“USD/CAD is testing the 200-day and 55-day averages at 1.2535/28, which may be about to bullishly cross higher. We therefore still look to hold above this ‘last resort’ support to keep the broader risk higher, with resistance still seen at 1.2655, then 1.2709, above which would still relieve the recent downside pressure, with next resistance at 1.2748 and then 1.2779.” 

“A break above 1.2836 is needed to reassert the uptrend again for a move back to 1.2950/57 and eventually our 1.3024 main objective.” 

“A break below the 55-day and 200-day averages at 1.2535/28 would suggest an important peak is already in place at 1.2952, with next support then seen back at 1.2479/74, before the 1.2422 price low.”