USD/CAD: A move beyond 1.3540 could confirm extension in bounce – SocGen

USD/CAD rebound has so far stalled near 1.3540. Economists at Société Générale analyze the pair’s outlook.

1.3350 is crucial support

Both the 200-Day Moving Average and daily MACD are having a flattish slope denoting a lack of clear direction. 

Price action is likely to remain in a narrow range in the short term. 

A move beyond 1.3540 could confirm an extension in bounce towards the December high of 1.3620 and perhaps even towards 1.3730. 

The recent pivot low at 1.3350 is a crucial support.