The Canadian dollar stalled after a surprise rise in unemployment in August. The pair has met stiff selling pressure at the July peak (1.3200). A fall below the consolidation range at 1.3070 caused leveraged short-term positions to liquidate. The daily support at 1.2900 is a key level to gauge the strength of the current rally. The RSI’s oversold condition has triggered a ‘buy-the-dips’ behaviour but buyers need to lift 1.3100 before the uptrend could resume. A bearish breakout could dent the optimism in the medium-term.
