Societe Generale strategists highlight that USD/CAD is tactically expensive versus the 2-year spread and has recently met resistance near 1.4250 before retracing toward 1.4130. They view this area as potential support but warn that a break lower could trigger a deeper pullback toward 1.4075 and the 50-DMA near 1.3950, framing near-term downside risks for the pair.
Key support eyed near 1.4130
"USD/CAD encountered interim resistance around 1.4250 last month and has since retraced toward the upper boundary of its previous broad consolidation range near 1.4130, which could serve as a potential support."
"It will be interesting to observe whether the pair can hold above this support."
"Should a break below 1.4130 materialize, USD/CAD may embark on a deeper pullback."
"The next objectives could be located at projections of 1.4075, followed by the 50-DMA near 1.3950."
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