The Canadian dollar bounces back supported thanks to a recovery in oil price.
The break below the daily support at 85.50 suggests that sentiment may have turned downbeat in the medium-term. However, there is still room for an intraday rebound after the RSI’s double-dip into the oversold area.
The indicator’s divergence also showed a slowdown in the sell-off.
A close above 87.10 would lead to the supply zone at 88.40 where we can expect stronger selling pressure. 86.20 is fresh support on the downside.
