USD/CAD must overpower the 1.2650/1.2735 region for next leg of uptrend – SocGen

USD/CAD has embarked on a steady uptrend after forming a trough near 1.2030/1.2010 last month. The pair is hovering around 1.25 and needs to surpass the 1.2650/1.2735 neighborhood to extend its rise, economists at Société Générale appraise.

1.2360 and 1.2250 are short-term support levels

“USD/CAD is heading gradually towards 1.2650/1.2735 representing the 200-DMA. This hurdle must be overpowered for the next leg of uptrend. A pause could develop after reaching these levels; 1.2360 and lower limit of an ascending channel at 1.2250 are short-term support levels.” 

“A break beyond 1.2650/1.2735 will affirm a larger up move towards 1.2840 and graphical hurdle of 1.2950/1.3030.”