USD/CAD’s rejection from the multi-month trendline near 1.4150 has triggered a decisive reversal, with the pair slipping below its ascending channel and the 200-DMA to hint at further downside momentum, Société Générale’s FX analysts note.
Break below channel and 200-DMA signals risk of deeper declines
“USD/CAD faced strong resistance at the multi-month descending trendline near 1.4150, triggering a sharp pullback. The pair has slipped below both the lower boundary of an ascending channel and the 200-DMA, signaling possibility of extension in decline.”
“A brief rebound is underway; however, failure to reclaim the 200-DMA (currently near 1.3910) could pave the way for a deeper down move. The next objectives are at September lows of 1.3770/1.3725, followed by 1.3660.”
Source: https://www.fxstreet.com/news/usd-cad-rejection-at-14150-sparks-sharp-technical-pullback-societe-generale-202512100903
