Canadian Dollar: Downtrend extends versus US Dollar – Societe Generale

Societe Generale highlights that USD/CAD has accelerated higher after breaking a descending trend line in place since last year, signalling a momentum shift and an attempted breakout from a broad multi-month range. While the move looks stretched, the bank sees no clear pullback signals yet, with support at 1.4130/1.4150 and upside objectives at 1.4250 and 1.4285/1.4335.

Momentum shift with new upside targets

"USD/CAD has accelerated its up move after crossing the descending trend line in place since last year, signalling a shift in momentum."

"The pair is now attempting to break out of a broad multi-month range."

"The move is somewhat stretched, however, there are no clear signals of a meaningful pullback yet."

"The November peak at 1.4130/1.4150 serves as the first support; defence of this zone may lead to continuation in up move."

"The next objectives could be located at projections of 1.4250 and 1.4285/1.4335."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)