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USD/CAD rejection at 1.4150 sparks sharp technical pullback – Société Générale

USD/CAD’s rejection from the multi-month trendline near 1.4150 has triggered a decisive reversal, with the pair slipping below its ascending channel and the 200-DMA to hint at further downside momentum, Société Générale's FX analysts note.

Break below channel and 200-DMA signals risk of deeper declines

"USD/CAD faced strong resistance at the multi-month descending trendline near 1.4150, triggering a sharp pullback. The pair has slipped below both the lower boundary of an ascending channel and the 200-DMA, signaling possibility of extension in decline."

"A brief rebound is underway; however, failure to reclaim the 200-DMA (currently near 1.3910) could pave the way for a deeper down move. The next objectives are at September lows of 1.3770/1.3725, followed by 1.3660."

Italy Industrial Output s.a. (MoM) came in at -1% below forecasts (-0.3%) in October

Italy Industrial Output s.a. (MoM) came in at -1% below forecasts (-0.3%) in October
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Pound Sterling gains ahead of BoE Bailey’s speech, Fed decision

The Pound Sterling (GBP) trades higher against its major currency peers on Wednesday as Bank of England (BoE) rate-setting members have favoured the gradual removal of monetary policy restrictiveness over aggressive easing.
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