USD/CAD: Decline could extend toward 1.3000/1.2930 on failure to defend 1.3110 – SocGen

Economists at Société Générale analyze USD/CAD technical outlook.

50-DMA near 1.3340/1.3380 is likely to be an important resistance zone

USD/CAD has achieved downside projections near 1.3110 resulting in a bounce. Daily MACD has started posting positive divergence denoting receding downward momentum. 

A short-term rebound can’t be ruled out however 50-DMA near 1.3340/1.3380 is likely to be an important resistance zone. 

If the pair fails to defend 1.3110, the down move could extend towards 1.3000/1.2930, the 50% retracement from 2021.

See – USD/CAD: Loonie is likely to remain supported for now – Commerzbank