USD/CAD rebound has stalled after approaching the December high of 1.3620. Economists at Société Générale analyze the pair’s technical outlook.

1.3440 is important support

The USD/CAD pair has experienced a sideways consolidation since last month. The flattish slope of 200-DMA denotes a lack of clear direction. 

Lower limit of the recent range near 1.3440 is important support. 

Once a break above 1.3620 materializes, USD/CAD could head higher towards 1.3730, the 76.4% retracement from November and perhaps even toward the graphical hurdle of 1.3860/1.3900.