The Canadian dollar dropped after a dovish BoC gave no hint of taper. The US dollar has been treading water near a six-year bottom. The horizontal consolidation between 1.2010 and 1.2140 is a sign of the market’s indecision.
The bears may have covered some of their bets as the RSI showed a deeply oversold situation on the daily chart. Though sentiment remains bearish unless the greenback clears offers at the critical resistance at 1.2175.
1.2060 has become the immediate support as the range narrows.
