CAD: 1.25 level may be more significant - BBH

In the second half of last week, the US dollar forged a shelf around CAD1.2250 and an outside up day was recorded before the weekend and the close was strong at CAD1.2400, points out the research team at BBH. 

Key Quotes

“It tested the 20-day moving average (~CAD1.2410) but did not close above it. It has not done so since December 20.  The CAD1.2420-CAD1.2460 area offers a nearby cap, but CAD1.25 may be more significant.  The MACDs and Slow Stochastics did not confirm the losses that took the greenback to its lowest level since last September.  Support may be pegged near CAD1.2330 now.”