Daily MACD denotes recovery of upward momentum – ​​Société Generale

USD/CAD is falling near the August low of 1.3440, which has led to a near-term upside move, FX analysts at Societe Generale note.

The MA near 1.3600 is likely to provide support

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

“The daily MACD has entered positive territory, which denotes the restoration of upward momentum. If a short pullback develops, the MA near 1.3600 is likely to provide support.”

“The defense of this may lead to further gradual upward movement towards the April high of 1.3840. The upper bound of the 2022 range at 1.3950/1.3980 remains a key area of ​​resistance.”