The Canadian dollar stays muted despite a slight improvement in retail sales in May. The greenback has met stiff selling pressure near February’s high (1.2800).
The sharp drop is likely due to profit-taking after a rally above the resistance of 1.2650 from the daily chart. If longs succeed in holding 1.2500, the sentiment would remain bullish. Failing that, the pair may retreat to 1.2300.
The RSI is rising back to the neutrality area, a sign of buying interest in the demand area. 1.2730 would be the immediate resistance ahead.
