Canadian Dollar: 1.3970 in Focus against US Dollar – Societe Generale

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.)