Flash: CAD unable to maintain surge - BBH

FXStreet (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that strong Canadian employment data at the end of last week saw the US dollar trade briefly below CAD1.10 for the first time since January 22.

Key Quotes

“The Canadian dollar could not sustain the upside momentum and retreated again. The large short Canadian dollar position, coupled with the downtrend in the USD RSI and MACDs warn of the risk of additional short-covering.”

“ If this is to happen, it is best that the US dollar holds below CAD1.0060-80 and it could fall toward CAD1.0850.”