Economists at Société Générale analyze USD/CAD technical outlook.
Short-term bounce is expected
USD/CAD has evolved within a range-bound consolidation since last October; a clear trend has been lacking as highlighted by crisscross moves around the 50-DMA.
The pair is now approaching the lower limit of its range near 1.3300/1.3220 which is a crucial support. Defence of this zone is essential to avert a deeper down move.
A short-term bounce is expected; April/May high of 1.3670 is likely to be an important hurdle
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