The Canadian dollar holds well against its US counterpart as July’s CPI remains stubbornly high. A bullish RSI divergence showed a deceleration in the sell-off. The greenback’s bounce above 1.2900 led sellers to close their positions. The initial momentum has dried up to let the RSI recover into the neutrality area. 1.2820 around the start of the bullish breakout is a demand zone to see whether there is enough follow up interest in pushing the US dollar higher. A close above 1.2950 could open the door to the recent peak at 1.3170.
