The Canadian dollar fell after an uptick in Canada’s unemployment rate in July. The pair has found bids at 1.2430, a key support on the daily chart.
A second test of the demand-turned-supply zone around 1.2575 is a sign of growing buying interest.
An overbought RSI has recovered to the neutral zone and may give the bulls room to double down.
A break above 1.2600 would lift the greenback towards the peak at 1.2800. However, a deeper pullback below 1.2500 may extend the consolidation to around 1.2430.
