USD/CAD broke out from its multiyear range and experienced an extended uptrend, Société Générale’s FX analysts note.
A move towards 1.4240 and 1.4150 can’t be ruled out
“The move has faced strong resistance near 1.4800 last month. A phase of consolidation is under way after this test. The pair has so far carved out a lower high near 1.4550, the 61.8% retracement of the first leg of pullback.”
“However, signals of a large decline are not yet visible. Low achieved earlier this week at 1.4350 is first support. If this is breached, a deeper down move can’t be ruled out towards 1.4240 and February low of 1.4150.”
