FXStreet notes that USD/CAD has broken clearly above 1.2145 to suggest the warned-of correction is beginning. Next resistance levels are seen at 1.2203, then 1.2253/85, the Credit Suisse analyst team reports.

“We look for a move to 1.2203 next, then 1.2253/85, which includes the important 55-day average, the 38.2% retracement of the fall from April and the ‘measured base objective’. We would look for a cap here for the medium-term downtrend to then reassert itself.” 

“Near-term support moves to the 1.2145/43 breakout point. A break below 1.2058/56 would quickly turn our bias back lower and negate the base, with a direct close below 1.2012/00 reasserting the broader downtrend.”