A fall in Canada’s unemployment rate from 8.2 % to 7.5 % in March helped lift the loonie against its US counterpart.
The pair has met strong selling pressure around the supply area (1.2640) found on the daily chart.
An overbought RSI has prompted short-term traders to take profit. However, the price’s subsequent failure to make a higher high signals weakness in the past week’s rally.
A drop below 1.2535 could trigger a broader sell-off in the continuation of the downtrend with 1.2470 as the next target.
