USD/CAD to test support at 1.2440/1.2420 as downside momentum lingers – SocGen

USD/CAD was successful in its attempt to break and close below 1.25 on Friday. Economists at Société Générale expects the pair to see further losses towards 1.2440/1.2420.

Short-term down move

“We think there is further room to catch up to the downside if oil prices stay above $83.”

“USDC/AD could drift towards 1.2440/1.2420 and 1.2365, the 61.8% retracement of recent bounce.”

“Reclaiming daily Ichimoku cloud at 1.2650 can lead to resumption in up move.”