USD/CAD looking to retest 1.2047 – JP Morgan

According to the analysts at JP Morgan, USD/CAD looks south towards mid-1.2000s on a sustained break below the 1.2400 threshold.

Key quotes

"In our view a sustained move below 1.24 puts bears firmly in control and sets the market up for an eventual retest of the 1.2047 Aug 2011 50% retrace, 1.206 Sep 2017 low, and 1.20 June 2021 cycle trough." 

"The 50-day MA now marks tactical resistance. Jul, Aug, and Sep saw blow-off type highs fail below the 1.2782-1.2993 price lows that defined the longer-term 2019-2020 bearish reversal pattern. We continue to view that threshold as a key area on the chart."