Choppy recovery in USD/CAD - SocGen

Choppy recovery in USD/CAD appears to have petered out recently after forming a bearish engulfing last week, suggests Research Team at Societe Generale.

Key Quotes

“On daily chart, it has faced stiff resistance near an upward channel limit of 1.3580, also the 50% retracement from January highs.  After confirming a double top, it has pulled back towards initial target at 1.3260. With weekly stochastic near a multiyear ceiling, a deeper retracement can’t be ruled out. The pair is likely to continue the down move towards lower limit of the daily channel at 1.3080/1.30 with next significant support at multiyear channel near 1.28. Neckline of the double top at 1.3370 will be an immediate resistance.”