CAD: Greenback has staged recovery - BBH

The US dollar slumped against the Canadian dollar from May 5 high near CAD1.3800 to the September 8 low of almost CAD1.2060, but greenback has staged recovery to test CAD1.2500 in the second half of last week, helped by signs from the governor and deputies of the central bank that a hike this month, which would be the third in a row, is unlikely, suggests the research team at BBH.  

Key Quotes

“The CAD1.25 area also corresponds to a 61.8% retracement of the greenback's decline since the mid-August high (~CAD1.2780).  The RSI and MACDs are still trending higher, but the Slow Stochastic may cross lower over the next few sessions. The weekly technical studies are becoming more US dollar friendly.”