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USD/CAD Pulls Back After Falling Below Upper Band, SocGen Says

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The US dollar versus the Canadian dollar failed to sustain its breakout above $1.4130, prompting a pullback from recent highs, Societe Generale said in a note Monday.

The US dollar's exchange rate against the Canadian dollar is now testing technical support near the 50-day moving average and the March peak at 1.3970, a key area that could determine whether the pair maintains its recent gains, said SocGen.

It will be important to monitor whether the pair can maintain above the 50-DMA, the bank said.

Any recovery is likely to encounter resistance around 1.4150-1.4175, while a break below 1.3970 could point to further downside toward 1.3850-1.3870, added SocGen.

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