Downtrend risk below key averages – Societe Generale

Societe Generale analysts note USD/CAD has slipped below its ascending trend line from December 2023 and rebounded from 1.3480, but the 200‑DMA near 1.3830 is seen as a key short‑term resistance. Analysts warn that failure to clear this level could see the pair resume its decline, with 1.3580 as first support and a break lower pointing to a renewed downtrend.

Key averages cap corrective rebound

“USD/CAD slipped below the ascending trend line drawn since December 2023 and drifted towards 1.3480.”

“It has experienced a quick rebound, however the 200-DMA near 1.3830 could be a short-term resistance.”

“Inability to cross the moving average may result in continuation of decline.”

“The low achieved earlier this week at 1.3580 is first support; break below this may lead to resumption in downtrend.”

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Source: https://www.fxstreet.com/news/usd-cad-downtrend-risk-below-key-averages-societe-generale-202602061115