USD/CAD to head higher towards 1.3810 and October high of 1.3980 – SocGen

USD/CAD climbed to a monthly high of 1.3677 on Tuesday and closed in positive territory for the fourth straight trading day. Economists at Société Générale expect the pair to extend its advance towards 1.3810 and October high of 1.3980.

First layer of support is located at 1.3510

“USD/CAD has negated the previous Head and Shoulders formation by crossing above the neckline. It has moved beyond a descending resistance line pointing towards short-term bounce. This is also highlighted by daily MACD which has entered positive territory.”

“The pair is expected to head higher gradually towards 1.3810 and October high of 1.3980.”

“First layer of support is located at 1.3510, the 38.2% retracement of recent bounce.”