USDCAD has rallied to test the top of its range and will likely fall back towards support around 1.3030, according to David Sneddon and his team at Credit Suisse in London.
Sneddon says USDCAD has been trapped in a broad sideways range since early May of this year. It is now testing the top of this range and key resistance at 1.3253/3312, which is the July 2016 price high, the falling 200-day moving average and the 38.2% retracement of the January to April 2016 fall.
A decisive break, however, above 1.3312 could see the currency pair target the 50% retracement level at 1.3575 and thereafter the 61.8% retracement level at 1.3839. More likely though, in Sneddon’s view, is that USDCAD moves back towards initial support at 1.3031/20, with stronger support appearing at 1.2822/2763.