CAD: One more leg down toward 1.3080 - BBH

Research Team at BBH notes that the Canadian dollar was the strongest of the majors, gaining 2% against the US dollar. 

Key Quotes

“Steady oil prices at elevated levels and the fact that Canada's discount on two-year money finished at the lows for the week may have been contributing factors.  Typically, the Canadian dollar performs well in a strong US dollar environment.  Last month, the US dollar was repulsed after testing the 50% retracement objective of the down move since the multi-year high was set at the start of the year a little below CAD1.4700.”

“Technical indicators are getting stretched, and the Canadian dollar strengthened six of the past seven sessions.   If the move is not exhausted, there may be one more leg down toward CAD1.3080.  A move back above CAD1.3220 may be the first sign that the US dollar has bottomed.”