USD/CAD: Rebound toward 1.38 possible within broader downtrend – Societe Generale

Societe Generale’s technical team notes USD/CAD has found tentative support near 1.3480, forming a small base, but sees no clear evidence yet of a larger uptrend. A rebound toward the upper boundary of the descending channel and 200‑DMA around 1.3750/1.3800 is possible, though this is strong resistance, with failure there pointing to renewed downside toward 1.3340/1.3300.

Key resistance at 1.3750/1.3800 caps upside

"USD/CAD has found tentative support near 1.3480 in January, forming a small basing pattern."

"A brief rebound towards the upper boundary of the multi‑month descending channel and the 200‑DMA around 1.3750/1.3800 cannot be ruled out."

"However, this is an important resistance zone. Inability to break above this hurdle may lead to continuation of the downtrend. A break below 1.3480 could extend the decline toward the channel lower limit near 1.3340/1.3300."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)