The Canadian dollar softened after the BOC cut its bond-buying less aggressively than expected. The pair previously saw profit-takings near the recent top at 1.2550.
The RSI’s triple top in the overbought area was already a sign of overextension. The price has once again bounced off 1.2430, a former resistance turned into a support. A bullish breakout could extend the rally beyond 1.2600.
But if buyers struggle to hold the range, the greenback could be vulnerable to a sell- off. Then 1.2300 would be the next stop.
