USD/CAD can extend the bounce towards 1.3540 on defence of last week’s low near 1.3340 – SocGen

USD/CAD has rebounded meaningfully from the sub-1.32 lows in late December to 1.3425. Economists at Société Générale analyze the pair’s technical outlook.

Daily MACD has rising slope denoting receding downward momentum

USD/CAD formed an interim low near projections of 1.3200/1.3180 late last month and has embarked on a steady bounce. It has crossed above the channel within which recent pullback developed. The break has led the pair towards 200-DMA.

Daily MACD is above its trigger line and has rising slope denoting receding downward momentum.

Defence of last week’s low near 1.3340 can extend the bounce towards 1.3540 and perhaps even towards December high of 1.3620.