USDCAD: Near-term target is a little above 1.33 - BBH

Research Team at BBH, notes that the US dollar pulled back to almost CAD1.29, which is a 38.2% correction to greenback's rally from the key reversal low on May 3.  

Key Quotes

“We suspect that is sufficient from which to continue the US dollar recovery.  We note that the US dollar rarely moved above its 20-day moving average as it fell from the end of January through early May.  The 20-day moving average is now acting as support for the greenback on the way up. 

A move above CAD1.3080 would raise our conviction of re-test, and likely penetration of the CAD1.3190 high see on May 24.  Our near-term target is a little above CAD1.33.”