Credit Suisse: USD/CAD eyes "double bottom" base, with potential to move higher

<p>Credit Suisse analyzes the USD/CAD currency pair
and identifies a potential "double bottom" base formation, indicative of
a more substantial move upwards. Here are the critical details:</p><p>Potential Double Bottom Base: Credit Suisse sees a
possibility for a "double bottom" base if USD/CAD trades above 1.3389 on
a sustained basis. Closing above this level would signal a more
concerted move higher.</p><p>Next Key Resistance: If the pair moves above 1.3389,
the next significant resistance is identified at the 200-day average,
currently at 1.3454. While this level might act as a cap initially, a
close above this point would reinforce the base, paving the way for
resistance next at 1.3478/80.</p><p>Bullish Divergence: The daily Relative Strength
Index (RSI) momentum already shows signs of a base and bullish
divergence, adding to the positive outlook.</p><p>Support Levels: Immediate support is seen at 1.3358,
and 1.3319 needs to hold to maintain the upside bias. A fall below
these levels could reassert a broader sideways range, with further
support at 1.3304/02, then 1.3285.</p><p>Key Points:</p><ol><li>Credit Suisse identifies a potential "double bottom" base for USD/CAD if it sustains trading above 1.3389.</li><li>Resistance levels are mapped out at 1.3454, followed by 1.3478/80, signaling further upward potential.</li><li>Bullish divergence in the daily RSI momentum supports the positive outlook.</li><li>Immediate support is at 1.3358, with levels below reasserting a more neutral range.</li></ol><p>Conclusion: Credit Suisse's analysis of USD/CAD
suggests potential bullish movement if the pair can sustain trading
above the critical level of 1.3389. The identification of a "double
bottom" base, along with the bullish divergence in RSI, paints a picture
of upward potential, with resistance and support levels clearly
delineated. Market participants may find this analysis valuable in
forming expectations for the currency pair's short-term trajectory.</p><p>For bank trade ideas, <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1691604601932000&amp;usg=AOvVaw3DosE3gjntyOMEUbcsS8Fh">check out eFX Plus</a>. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1691604601932000&amp;usg=AOvVaw3DosE3gjntyOMEUbcsS8Fh">Get it here</a>.

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This article was written by Adam Button at www.forexlive.com.