USD/CAD set to return to 1.38/1.40 into next week – SocGen

USD/CAD gathered bullish momentum and broke above 1.3700 on Tuesday. The pair is expected to trade again in the 1.38/40 arera into next week, economists at Société Générale report.

First layer of support is located at 1.3700/1.3660

“USD/CAD accelerated through 1.37 after Powell and a return to 1.38/1.40 into next week is now likely unless we get underwhelming US employment and inflation data.” 

“The pair looks poised to head higher gradually towards 1.3860 and peak of last year at 1.3980/1.4040.”

“First layer of support is located at the upper limit of previous range near 1.3700/1.3660.”