The Canadian dollar surged after the BoC announced a reduction of its asset purchasing program.
After a month-long consolidation, the loonie may have finally found momentum to break free. The sell-off below 1.2470 suggests strong selling interest and potential for bearish continuation. The price may retrace briefly after the RSI shot into the oversold zone.
1.2650 is the immediate resistance and 1.2420 would be the next target. A combination of short-covering and fresh buying could send the price to 1.2360.
