FXStreet notes that USD/CAD has found a floor as expected at the 38.2% retracement of the June/August rally, uptrend and the 200-day average (DMA) at 1.2546. Consequently, analysts at Credit Suisse look for the broader uptrend to resume from here.

“A floor has been found at the 200-DMA seen at 1.2546 as looked for and we continue to look for the broader risk to turn higher again.”

“Resistance is seen at 1.2711/21 initially, above which can keep the immediate risk higher with resistance seen next at 1.2748 and then 1.2779.”

“Near-term support moves to 1.2644, with 1.2592/79 now ideally holding. A break can see a fall to the 200-DMA at 1.2546, potentially the 55-DMA, now seen not far below here at 1.2502.”