FXStreet notes that a positive start to the week for USD/CAD leaves the pair staging a concerted challenge on the major cluster of resistances at 1.2632/53. Economists at Credit Suisse continue to look for a clear and sustained move above here to establish a major base to turn the broader risks higher. 

“USD/CAD is staging a concerted challenge on the major cluster of resistances at 1.2632/53, which includes the 200-day average, the 23.6% retracement of the entire 2020/2021 bear trend and a cluster of price highs. With weekly MACD momentum having already turned higher we continue to look for a clear and sustained move above here to establish a major base to turn the broader risks higher.” 

“We would see initial resistance at 1.2751/64, the highs from February, then 1.2881, with the size of the potential base suggesting a move to 1.3024 is possible, the 38.2% retracement of the 2020/2021 fall.” 

“Near-term support moves to 1.2608, then 1.2577/72, with 1.2561 ideally holding to keep the immediate risk higher.”