USD/CAD has rejected the YTD high at 1.3078. Analysts at Credit Suisse look for a near-term consolidation below this level.

Drop below 1.2816/01 to signal a deeper move lower

“We stay biased for the market to remain capped below 1.3078/1.3123 to avoid a breakout higher and to see a near-term consolidation below this area, though a fall back below 1.2911 is needed reduce the immediate risk of a break higher.” 

“Only a break below the recent low at 1.2816/01 would signal a mean-reversion back towards the bottom of the channel, with next support then seen at 1.2771/52 and then at 1.2680/71.” 

“A sustained move above 1.3100/23 would make room for further upside to next resistance at 1.3172/77. Nonetheless, with the current volatile environment in mind, we would stay wary of a potential mean-reversion back upon reaching this level.”