USD/CAD has re-integrated within multiyear upward channel - SocGen

Research Team at Societe Generale, suggests that the USD/CAD has re-integrated within multiyear upward channel and in the process it has formed a bearish engulfing last month.

Key Quotes

“This follows a shooting star in January and denotes possibility of further down move. 1.3650/1.37 should cap immediate upside.

After hitting projection for up move at 1.4690, USD/CAD is undergoing a correction. It has re-integrated within a multiyear channel indicating a test of last September highs at 1.3460 with possibility to reach next support at 1.3260, 76.4% retracement since October. Short term pullback should be capped at 1.40/1.4030.”