USD/CAD: Breaking Important Trendline - BBH
According to analysts from Brown Brother Harriman, USD/CAD
has risen above a relevant trendline and they affirmed that technicians
refer to the recent bounce from the lows as a key reversal.
“It has been painful trying to pick a bottom of the US dollar against the Canadian dollar. But now a 4-5 point downtrend from the secondary high in late-January is being violated today. It is found near CAD1.2785”.
“We note that yesterday the US dollar made a new low for the move near CAD1.2460 before recovering to close above the recent highs, in what technicians refer to as a (potential) key reversal.”
“Technical indicators like the RSI and MACDs did not confirm the low, which regarded as a bearish divergence. The US dollar is flirting with a retracement target near CAD1.2820. The next target is CAD1.2930, with CAD1.30-CAD1.3045 being a key technical hurdle.”