USD/CAD tests key 200-DMA support zone – Société Générale

USD/CAD is pressing into major support at the 200-day average and the base of its multi-month channel near 1.3920/1.3880, Société Générale’s FX analysts note.

Break below 1.3880 opens path to 1.3830, 1.3770

“USD/CAD has pulled back towards the lower limit of a multi-month channel and the 200-DMA at 1.3920/1.3880. It will be interesting to see if the pair can maintain above this zone. A brief bounce is possible, however, recent highs near 1.4150 may provide resistance.”

“In case the pair fails to defend the moving average, the decline may extend. The next objectives could be located at 1.3830 and September low of 1.3770/1.3725.”