The Canadian dollar is under pressure as oil prices retreat. The pair saw buying interest at 1.2600, which is major support for a four-month-long rally on the daily timeframe.
The RSI’s bullish divergence indicates that the selling pressure may have waned.
A break above the immediate resistance (1.2670) would prompt sellers to cover. 1.2800 near September’s peak could be the target should a rebound gain traction.
On the downside, a bearish breakout may send the price to the psychological level of 1.2500.
