USD/CAD breaks below 200-DMA, downtrend persists – Société Générale

USD/CAD continues its descent after slipping below the 200-DMA, now hovering near a long-term trend line. While momentum indicators show some signs of stabilization, the technical outlook remains fragile without a clear bounce, Société Générale's FX analysts note.

MACD divergence suggests easing bearish momentum

"USD/CAD has extended the down move after giving up the 200-DMA (now at 1.4030). It is at an ascending trend line drawn since 2021. Daily MACD has started posting positive divergence highlighting receding downward momentum however signals of a meaningful bounce are not yet visible."

"The MA at 1.4030 is a short-term resistance. Inability to cross this hurdle can lead to persistence in decline towards next projections at 1.3610/1.3570 and last September low of 1.3420."