USD/CAD: Downtrend risk below key averages – Societe Generale

FXStreet Insights Team FXStreet

Societe Generale analysts note USD/CAD has slipped below its ascending trend line from December 2023 and rebounded from 1.3480, but the 200‑DMA near 1.3830 is seen as a key short‑term resistance. Analysts warn that failure to clear this level could see the pair resume its decline, with 1.3580 as first support and a break lower pointing to a renewed downtrend.

Key averages cap corrective rebound

"USD/CAD slipped below the ascending trend line drawn since December 2023 and drifted towards 1.3480."

"It has experienced a quick rebound, however the 200-DMA near 1.3830 could be a short-term resistance."

"Inability to cross the moving average may result in continuation of decline."

"The low achieved earlier this week at 1.3580 is first support; break below this may lead to resumption in downtrend."

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

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD holds ground near 1.1800 ahead of US sentiment data

EUR/USD holds recovery ground near 1.1800 in the European session on Friday. The pair attracts minor bids as the US Dollar ticks down amid an improvement in speculation that the Federal Reserve could cut interest rates in the March policy meeting. The focuis is now on the US consumer sentiment data.

GBP/USD approaches 1.3600 on the road to recovery

GBP/USD rebounds after two days of gains, eyeing 1.3600 in European trading on Friday. The US Dollar retreats from two-week highs amid profit-taking, lending support to the major ahead of the US UoM Consumer Sentiment and Inflation Expectations data. BoE Chief Economist Pill's speech is also awaited.

Gold rebounds to $4,900 amid flight to safety, Fed rate cut bets

Gold builds on its goodish intraday bounce from the vicinity of mid-$4,600s, or a four-day low touched during the Asian session, and climbs to a fresh daily high in the last hour. A turnaround in the risk sentiment drives flow toward traditional safe-haven assets and acts as a tailwind for the commodity.