07:26 AM EST, 11/26/2024 (MT Newswires) -- USD/CAD broke out above the upper band of its multiyear range earlier this month, noted Societe Generake.

It did witness a retest of that limit, but the pullback remained contained at an August high of 1.3940/1.3925 which is a crucial support zone, wrote the bank in a note to clients.

The US dollar (USD) and Canadian dollar (CAD or loonie) have extended their up move after this test and have reached a steep channel limit near 1.4175/1.4190, said SocGen.

The move is a bit "stretched," stated the bank. However, signals of a deeper pullback aren't yet visible. First support is at 1.4025, the 61.8% retracement of the last bout of uptrend. The next projections are located at 1.4270 and 1.4350.

A break below 1.3940 would be crucial for confirming short-term decline, according to SocGen.