USD/CAD to suffer a deeper pullback on a break under 1.3260/20 – SocGen

USD/CAD stays relatively quiet near the upper-limit of its weekly range at around 1.3450. Economists at Société Générale discuss the pair’s technical outlook.

A short-term rebound towards 1.3520/1.3540 is on the cards

“The USD/CAD pair appears to be forming a base.” 

“A short-term rebound is not ruled out towards 1.3520/1.3540 and December high of 1.3700. This must be overcome to affirm the next leg of uptrend.” 

“Only if 1.3260/1.3220 gets violated, would there be a risk of a deeper pullback.”

See: USD/CAD to dip under 1.34 if Canada jobs data surprise to the upside – BofA