The Canadian dollar bounces back after a fall in June’s unemployment rate.
The drop below 88.00, the origin of the previous rebound, has put the loonie back on the correction path.
The RSI’s double-dip into the oversold zone has prompted intraday players to take profit, momentarily driving up the price.
This may turn out to be a dead cat bounce as the pair tests the supply area around 88.80. A drop below 87.40 could lead to another round of sell-off towards the major demand zone around 86.50 on the daily chart.
