USD/CAD decline stalls near August low of 1.3440, which resulted in a short-term up move, Societe Generale’s FX analysts note.

MA near 1.3600 is likely to provide support

“USD/CAD decline stalled near August low of 1.3440; this test has resulted in a short-term up move. The pair has recently reclaimed the 200-DMA.”

“Daily MACD has entered positive territory denoting regain of upward momentum. In case a brief pullback develops, the MA near 1.3600 is likely to provide support.”

“Defence of this can result in continuation in up move gradually towards April high of 1.3840. Upper limit of the range since 2022 at 1.3950/1.3980 remains a key resistance zone.”