USD/CAD: Retracement is underway – SocGen

By FXStreet Research Team at Societe Generale, notes that the USD/CAD probed the multiyear ascending channel support last week at 1.3760/1.37, where it has formed a daily hammer and bullish engulfing.

Key Quotes

“With daily stochastic indicator near a trend support, a recovery looks possible. A break above 1.3910, a steeper descending trend will lead to a pullback initially towards 1.4170 and even towards 1.4290/1.4330, the 61.8% retracement from January highs.

USD/CAD broke above broad upward channel which was in force since 2007 lows and achieved our initial target of 1.4690. Since then a retracement is underway and it has retested the channel limit at 1.3760/1.37. A clear break below will be needed to signal extension in the down move towards 1.35/1.3460.”
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Source:: FX Street