USD/CAD: Phase of decline could extend on failure to reclaim 1.3350/1.3380 – SocGen

Economists at Société Générale analyze USD/CAD technical outlook.

Possibility of a deeper pullback

USD/CAD has breached the lower limit of the broad consolidation within which it evolved since October last year. The break highlights possibility of a deeper pullback. 

If the pair struggles to reclaim the multi-month ascending trend line at 1.3350/1.3380, the phase of decline could extend. Next potential objectives are located at projections of 1.3110 and 1.3000/1.2930, the 50% retracement from 2021.

See: USD/CAD can break below 1.30 as early as this summer – ING