Societe Generale technical analysts highlight that USD/CAD failed to sustain a break above 1.4130, triggering a deeper pullback. The pair is drifting towards the 50-DMA and March peak near 1.3970, seen as key support. A rebound could face resistance at 1.4150/1.4175, while a break below 1.3970 would expose the May high around 1.3870/1.3850.
Key support at 1.3970 under scrutiny
"USD/CAD failed to hold above the upper band of its previous broad consolidation range at 1.4130, resulting in a deeper pullback."
"The pair is gradually drifting towards the 50-DMA, the March peak around 1.3970 could be a potential support."
"It will be important to monitor whether the pair can maintain above the 50-DMA."
"If a short-term rebound materializes, last week's high at 1.4150/1.4175 may act as an interim resistance."
"Failure to defend 1.3970 could extend the decline towards the May high around 1.3870/1.3850."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.