USD/CAD eyes 1.3800 break as momentum builds – Société Générale
|USD/CAD is approaching key resistance at 1.3800 after consolidating gains from its June low near 1.3535. With momentum turning more constructive, a breakout could open the door to 1.3910 and the 200-DMA near 1.4000, Société Générale's FX analysts note.
Positive divergence signals recovery potential in USD/CAD
"USD/CAD decline has stalled after forming a durable trough near 1.3535 in June and has experienced a sideways consolidation. Daily MACD has been posting positive divergence highlighting receding downward momentum."
"The pair is in vicinity to the upper limit of its recent range at 1.3800. If USD/CAD crosses this hurdle, a larger up move could take shape towards projection of 1.3910 and the 200-DMA at 1.4000/1.4045. The low achieved this week at 1.3680 is first layer of support."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.