USD/CAD eyes 1.3800 break as momentum builds – Société Générale

USD/CAD is approaching key resistance at 1.3800 after consolidating gains from its June low near 1.3535. With momentum turning more constructive, a breakout could open the door to 1.3910 and the 200-DMA near 1.4000, Société Générale's FX analysts note.

Positive divergence signals recovery potential in USD/CAD

"USD/CAD decline has stalled after forming a durable trough near 1.3535 in June and has experienced a sideways consolidation. Daily MACD has been posting positive divergence highlighting receding downward momentum."

"The pair is in vicinity to the upper limit of its recent range at 1.3800. If USD/CAD crosses this hurdle, a larger up move could take shape towards projection of 1.3910 and the 200-DMA at 1.4000/1.4045. The low achieved this week at 1.3680 is first layer of support."