The Canadian dollar surged after November’s unemployment rate fell to 6%. A bearish MA cross on the daily chart still indicates a pessimistic mood.
An oversold RSI on the hourly chart caused a limited bounce as short-term traders took profit. Sellers are eager to fade rebounds with the latest being at 89.20, 87.20 at the base of the October rally would be the next support.
A deeper correction may send the loonie to 85.90. The bulls will need to lift said resistance before they could initiate a reversal.
