USD/CAD achieved projections near 1.3860 earlier this month and has embarked on an initial pullback. A break under 1.3500/1.3420 would mean onset of a deeper downtrend, analysts at Société Générale report.

Overcoming recent peak near 1.3860 would affirm extension in up

“Break below a short-term channel highlights possibility of a down move towards 1.3630 and the 50-DMA at 1.3500/1.3420 which is also the ascending trend line drawn since June last year. This is an important support; only a break below would mean onset of a deeper downtrend.”

“Overcoming recent peak near 1.3860 would affirm extension in up move towards last year high of 1.3980/1.4040.”