The result of the Canadian election has left USDCAD testing its long-term uptrend, say David Sneddon and his team at Credit Suisse in London.

Sneddon expects a test of important support at 1.3071, which comes from its long-term uptrend from 2012 (see Chart). Although this is managing to hold for now, he says a direct break would increase the risk of a more significant reversal lower to clear the way for a retest of the July lows and trend support at 1.3017/16. Should USDCAD break below this level it would confirm a more significant trend lower is underway with support seen next at the 1.2782 low from October last year.

See Chart.