CAD: Greenback downside correction may not be over – BBH
Analysts at BBH note that the US dollar peaked against the Canadian dollar near CAD1.2920 at the end of October, and before the weekend it had fallen to about CAD1.2665.
“The two-month uptrend line is found near CAD1.2655. Additional support is seen near CAD1.2630. The two-year rate differential continues to consolidate around 20 bp, the upper end of where it has been for almost four months. The five-day moving average is poised to fall through the 20-day average for the first time since September 22. This coupled with the daily technical studies warns that greenback downside correction may not be over.”