The Canadian dollar struggles as risk appetite remains fragile, in regard to commodity currencies. The bulls did not waste time after they pushed through the supply zone near 1.2650.
A combination of short-covering and momentum buying dialed-up volatility. 1.2870 near March’s highs is a major hurdle and its breach could pave the way for a bullish reversal above 1.2950.
Nonetheless, the RSI’s bearish divergence suggests that the rally could be losing steam in the near term. 1.2690 is the first support for buyers to regroup.
