The Canadian dollar strengthened after retail sales.
The pair had exhibited a bearish RSI divergence, a sign of overextension after the greenback’s breakneck surge. The break below 1.2350 shows a lack of further commitment from buyers and confirms the bearish MA cross.
The RSI is bouncing back from an oversold situation. 1.2260 might be a temporary support. Then 1.2155 is a major level to keep the rebound relevant.
On the upside, the rally may only resume if the bulls succeed in pushing back above 1.2400.
