USD/CAD: Bullish Engulfing Suggests Possibility of Short Term Rebound - SocGen

USD/CAD: Bullish Engulfing Suggests Possibility of Short Term Rebound - SocGen

Research Team at Societe Generale, notes that after a steady down move USD/CAD probed their earlier advocated level of 1.25, the monthly channel limit and the 38.2% retracement from 2007 lows.

Key Quotes

“Monthly RSI is probing a multiyear trend support suggesting 1.25 as key and a break below will be needed for further downtrend. Formation of bullish engulfing pattern yesterday suggests possibility of short term rebound. A break above descending channel at 1.2750 will lead to a recovery initially towards March lows of 1.2850 and perhaps even towards 1.30, 23.6% retracement from January highs.”