FXStreet reports that USD/CAD has broken beneath the 55-day average at 1.3247/42, confirming a more direct resumption of the medium-term bear trend. Analysts at Credit Suisse see the next support at 1.3157, then a cluster of price supports at 1.3128/19. 

“USD/CAD has seen a sharp fall and closed beneath the crucial ‘neckline’ to the small base and 55-day average at 1.3247/42, negating the former base and confirming a more direct resumption of the medium-term bear trend.”

“We now expect to see a fall back to 1.3171, ahead of the 61.8% retracement of the September surge at 1.3157. Beyond here can see a move back to a cluster of price supports at 1.3128/19, removal of which could open the door for a fall back to 1.3047/45.”

“Bigger picture, further weakness from current levels could be the start of the ‘right shoulder’ to much larger long term top, in which case weakness should accelerate sharply from here.”