USD/CAD: A break below 1.2532/31 seems increasingly likely

USD/CAD is still clinging onto key moving average support at 1.2532/31. However, analysts at Credit Suisse turn their bias to the downside, with next support at 1.2479.

Closing break below 1.2532/31 to turn the risks lower

“We now think a breakdown is increasingly likely given the breakout in other commodity currencies and the declining short-term momentum. 

“A confirmed and closing break below the 55-day and 200-day averages at 1.2532/31 would suggest an important peak is already in place at 1.2952, with next support then seen back at 1.2479/74, before the 1.2422 price low.” 

“Resistance is still seen at 1.2655, then 1.2709, above which would still relieve the recent downside pressure and quickly turn the risks back higher, especially if it comes on the back of a hold above the aforementioned moving averages. Next resistance is seen at 1.2748, then 1.2779.”