The Canadian dollar rose after January’s CPI exceeded expectations. The recent triple top near 1.2800 at the origin of the January sell-off is a sign of strong bearish pressure.
A combination of profit-taking and new selling means that sentiment is yet to make a decisive turnaround. The bulls will need to push past this major daily resistance before the US dollar could recover to 1.2960.
Failing that, a drop below the lower band (1.2640) of the current consolidation range would bring the pair to 1.2560.
