• USD/CAD briefly tagged 1.42, which now raises the risk of a bout of profit-taking

• Spot has rallied from mid-1.3750s to 1.4200 with minimal pullbacks

• Overbought RSI cautions against aggressively chasing at these levels

• Broad USD moves look stretched, lowering the bar for a retracement

• Initial support at 1.4126-40, then 1.4000

• For further upside, need a decisive close above 1.4200, to keep YTD high at 1.4248 in focus
USDCAD daily chart

Justin McQueen is a Reuters market analyst. (The views expressed are his own). ((Email: ))