USD/CAD has reinforced its recovery after bottoming near 1.3535 in June, breaking above a multi-month trend line and the 50-day average. With the MACD back in positive territory and short-term support at 1.3700, the pair is positioned to test higher levels toward 1.3910 and the May peak near 1.4000/35, Société Générale's FX analysts note.

Upside targets seen at 1.3910 and 1.4000/35

"USD/CAD has staged a steady rebound after forming a durable trough near 1.3535 in June. The pair has broken above a multi-month descending trend line and is now above the 50-DMA, underscoring a resurgence in upward momentum."

"This is also supported by the daily MACD, which has recently crossed above the equilibrium line. The MA at 1.3700 is a short-term support; defence of this could lead to further gains. The next objectives are at projections of 1.3910 and May peak near 1.4000/1.4035."