The Canadian dollar slumped against its buoyant US counterpart despite Canada’s upbeat CPI.
The greenback has pierced through the key resistance at 1.2200. The bullish breakout could initiate a reversal as sellers scramble to cover.
The pair is looking to consolidate its gains above the 30-day moving average.
1.2300 is the next resistance. The RSI has ventured again in the overbought area and could face a pullback as momentum players take chips off the table.
1.2155 is the immediate support in case of a retreat.
