The commodity-linked Canadian dollar took a hit after risk appetite receded. The pair saw strong momentum plays after it cleared 1.2650, a major resistance from last April.
Short-covering in a crowded bearish trend may have contributed to high volatility. This could be an inflection point for the greenback in the medium term.
In the meantime, February’s high at 1.2870 is the next target. Meanwhile, the RSI is back to the neutral area, and the direction is up as long as the price stays above 1.2600.
