USD/CAD to continue its fall towards the 1.2208 support – Credit Suisse

USD/CAD remains trapped in a range after holding below short-term resistance at 1.2433/46. Analysts at Credit Suisse still see scope for support at 1.2252/2208. 

Resistance stays at 1.2492/99

“We still believe that the recent break below the 200-day average and 3rd September low confirmed an irregular top, which suggests that further weakness is still likely, despite the turn in short-term momentum.”

“We look for a break below the recent range low at 1.2287 for a move to 1.2252 next, with further retracement support just below here at 1.2208. This level is likely to prove a tough barrier in our view, however, we note that the next supports are seen at 1.2156/45.”

“Resistance moves to 1.2433/46, above which would suggest a correction back higher and a test of 1.2492/99, which we would look to cap the market to maintain our downside bias.”