USD/CAD’s decline from a multi-month trend line near 1.4150 has led to a decisive reversal, with the pair retreating below its ascending channel and its 200-DMA to signal further downside momentum, FX analysts at Société Générale noted.
A break below the channel and the 200-DMA indicates the risk of deeper declines
“USD/CAD faced strong resistance at a multi-month downtrend line near 1.4150, triggering a sharp pullback. The pair slid below the lower limit of an ascending channel and the 200-DMA, indicating a possible extension of the decline.”
“A brief recovery is underway; however, failure to reclaim the 200-DMA (currently near 1.3910) could pave the way for a deeper downward move. Next targets are at the September lows at 1.3770/1.3725, followed by 1.3660.”
