FXStreet reports that analysts at Credit Suisse see scope for a USD/CAD move to 1.3024 – the 38.2% retracement of the 2020/2021 decline.

“USD/CAD has accelerated dramatically higher for a conclusive break and close above 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. This has seen a major base established as looked for to turn the broader risks higher.” 

“We see resistance at the highs for the year at 1.2870/81 and although a fresh cap here should be allowed for, we look for a break in due course for a move to 1.2957/59 and then 1.3024 – the 38.2% retracement of the entire 2020/2021 fall. Our bias would be for this to then prove a tougher initial barrier.”