CAD: Technical indicators getting stretched - BBH

The Canadian dollar was the weakest of the major currencies, losing almost 2% against the US dollar and was the second weekly decline and the fourth in the past five weeks, points out the research team at BBH.  

Key Quotes

“The US dollar has risen about 5.3% against the Canadian dollar since the end of January and is testing the CAD1.2920 area that capped it in Q4 17. That area corresponds to 50% retracement of the greenback's losses since last May. A convincing move above there would target CAD1.30 on the way to CAD1.3130, the 61.8% retracement objective.”

“The technical indicators are getting stretched but do not stand in the way of additional US dollar gains.  The one note of caution is coming from the Bollinger Bands, where the greenback is pushing through the upper band (~CAD1.2870).  Also, the US dollar has risen for ten of the past 11 sessions against the Canadian dollar, which is unusual.”