The Canadian dollar stalled after the Q2 GDP fell short of expectations. The US counterpart is testing the 30-day moving average and last week’s rebound failed to make an impression.
The fall below 1.2580 suggests a lack of buying interest. 1.2500 on the daily chart is a critical floor. A deeper retracement would put buyers on the defense with 1.2300 as a potential target.
On the upside, buyers will need to rack up offers at 1.2700 before they could hope for a second chance. Then 1.2900 would be within reach.
