USD/CAD is easing lower after failing to break above resistance near 1.4150, with the pair now drifting toward a cluster of major support levels that could determine the next directional move, according to FX analysts at Société Générale.
The rejection at the upper boundary of a multi-month ascending channel—aligned with the February low near 1.4150—has prompted a corrective pullback.
Price action is now gravitating toward the 200-day moving average (200-DMA) and the lower edge of the channel at 1.3930/1.3880, a zone Société Générale describes as “crucial support.”
Bounce possible, but risks tilt lower on a break
Analysts note that this support region could prompt a short-term rebound if defended successfully. However, a sustained break below the 1.3930/1.3880 band would raise the risk of a deeper decline, potentially extending the pair’s corrective cycle.
For now, USD/CAD remains in retreat, with traders watching the 200-DMA zone closely for signs of stabilization—or confirmation of further downside momentum.
