The Canadian dollar softened after the economy unexpectedly stalled in Q4. On the daily chart, the pair is looking to come out of its five-month long consolidation, but stiff selling pressure has kept the price below the top band and January’s peak of 1.3680. A bounce off 1.3530 is a sign of follow-up interest. Further down, the confluence of the previous swing low of 1.3440 and the 20-day SMA is a significant support. A decisive break above 1.3680 would trigger a runaway rally and resume the uptrend in the medium-term.
