The USD/CAD pair failed to cross the major trend line barrier at 1.4150 and is falling towards the 200-DMA. A short-term bounce is possible, but a break below 1.3920/1.3880 could open the way for a broader downward move, note foreign exchange market analysts at Société Générale.
The pair is sliding towards the 200-DMA support area
“USD/CAD failed to overcome the temporary hurdle near 1.4150 that represents the downtrend line drawn since January and the February 2025 low. The pair has pulled back towards the 200-DMA near 1.3920/1.3880, which is also the lower limit of the uptrend channel drawn since July.”
“A short-term recovery is likely; a break above 1.4150 will be crucial to confirm a larger uptrend. An inability to defend the moving average near 1.3920/1.3880 could lead to an extended decline.”
