FXStreet reports that analysts at Credit Suisse note that the USD/CAD pair has not managed to follow through on the downside, completing a bullish “hammer” to suggest near-term upside, with resistance at 1.2741/46.

“USD/CAD has not managed to see a close beneath the crucial 1.2686/82 level, reverting back higher and completing a small bullish ‘hammer’ to suggest further near-term upside.” 

“We see room for a move back to key short-term averages at 1.2741/46, with scope for an overshoot to the 55-day average at 1.2770, which then ideally caps for a move back lower. Post this setback higher, we look for weakness to resume and look for an eventual close beneath the crucial 1.2686/82 lows.” 

“A clear and sustained close beneath 1.2686/82 would see the prior base negated, with support seen thereafter at the back of the December 2020 downtrend, currently at 1.2640.”