The Canadian dollar retreats dragged by weakness in oil prices, the country’s main export. The pair has been hovering above the daily support at 1.2820. The RSI’s double dip in the oversold area led some traders to buy the dip. A rally above 1.2930 would squeeze the short side. The bulls will need to clear 1.3020 before they could regain control and push back above 1.3130. Failing that, the path of least resistance would be down. A fall below 1.2820 would invalidate the July rally and cause a sell-off towards 1.2700.
