The Canadian dollar softened as the BoC may not budge despite a solid labour market. The pair turned south at 1.3860 as the daily RSI’s overbought condition combined with a bearish divergence on the hourly chart suggests that the price action may need some breathing room. 1.3750 saw some bids as trend followers stepped in at a discount but a deeper correction would send the greenback to the 20-day SMA near 1.3630, which coincides with the origin of the bullish breakout. 1.3770 has become a fresh resistance.
