USDCAD could sustain losses in the near term, according to economists at Société Générale. The pair may test the 1.3370/1.3330 region.

Overcoming 1.3810 essential to affirm next leg of uptrend

“USDCAD faced interim resistance near 1.3980 last month and has evolved within a Head and Shoulders. This formation points towards possibility of a breather and short-term downside.”

“A dip towards the upper limit of the previous ascending channel and projections at 1.3370/1.3330 is not ruled out.”

“Overcoming right shoulder levels near 1.3810 would be essential to negate the pattern and affirm next leg of uptrend.”