Foreign exchange market analysts at Société Générale note that the USD/CAD pair is pressing towards the key support level at the 200-day moving average and the base of its multi-month channel near 1.3920/1.3880.
A break below 1.3880 opens the way towards 1.3830 and 1.3770
“USD/CAD has pulled back towards the lower end of a multi-month channel and the 200-DMA at 1.3920/1.3880. It will be interesting to see if the pair can stay above this area. A short bounce is possible, however, recent highs near 1.4150 may provide resistance.”
“If the pair fails to defend the moving average, the decline may be extended. Next targets may lie at 1.3830 and the September low at 1.3770/1.3725.”
