AUD and CAD: Technical tones have deteriorated - BBH

Research Team at BBH, suggests that the technical tones of the Australian and Canadian dollars have deteriorated in the recent past. 

Key Quotes

“The US dollar recovered off the midweek test on CAD1.28 and finished the week near CAD1.3050. The Canadian dollar's pre-weekend loss of a little more than 0.8% was the largest loss in over month.  It was sufficient to offset the gains it has registered earlier in the week.  It closed the week with about a 0.4% decline, the most among the high income countries.  The RSI and MACDs suggest additional losses are likely.  The next objective is CAD1.3150. 

The Aussie posted a key downside reversal on September 8 and saw follow-through selling before the weekend.  The nearly two cent was the largest decline over two days since the UK referendum.  Like the Canadian dollar, the Australian dollar's RSI and MACDs warn of the risk of additional selling over the coming sessions.  A break of the $0.7490-$0.7500 area is needed to boost confidence that a high of some import is in place.”