Research Team at Societe Generale, suggests that after having formed a shooting star last month, USD/CAD is tentatively breaching the massive ascending channel limit (1.37) and is currently close to a multi month support trend which also corresponds with recent lows. Key Quotes “In light of long dated indicators that are diverging negatively, the upside appears to remain capped for time being. A weekly close below 1.37 will mean a deeper retracement initially towards last September highs of 1.3460 with intermittent support at 1.3540. 1.37/1.3780 is an immediate resistance while 1.4330 will be an important hurdle near term. USD/CAD broke above broad upward channel which was in force since 2007 lows and achieved our initial target of 1.4690. Since then a retracement is underway and it is probing the channel limit (at 1.37). A weekly close below will mean extension in the down move towards last September highs of 1.3460.” For more information, read our latest forex news.