USD/CAD continues its decline and trades below the mid-1.35s. Economists at Société Générale analyze the pair’s technical outlook.
Recent pivot high at 1.3760 could provide resistance
USD/CAD recently breached the ascending channel since July and gave up the 50-DMA denoting regain of downward momentum. This is also highlighted by daily MACD which has entered negative territory.
The pair is drifting towards next projections of 1.3500/1.3480; this could be interim support. An initial bounce is likely however recent pivot high at 1.3760 could provide resistance.
Failure to defend 1.3500/1.3480 can extend the down move towards September low of 1.3385 and 1.3280.