The Canadian dollar rallied on better-than-expected March GDP growth. The US dollar’s recent bounces have failed to clear the key resistance at 1.2140. An overbought RSI in that supply area was rather a signal to sell into strength.
The selling pressure intensified after the price dipped to the psychological level of 1.2000. The bearish MA cross indicates a new round of sell-off which would carry the greenback towards May 2015’s low at 1.1920. Any rebound might be capped by the resistance at 1.2090.
