Weaker German Inflation and Eurozone Data Set Bearish Tone for EUR/CAD

In today’s technical piece, let’s focus on the Euro to Canadian Dollar (EUR/CAD), which experienced significant movement yesterday following the weaker-than-expected inflation data from Germany, coming in at 0% instead of the forecasted 0.1%. Today, the pair is expected to be further influenced by the Eurozone inflation numbers, making this an interesting period for traders focused on EUR/CAD.

From a technical perspective, the pair is currently trading within a larger symmetric triangle pattern, marked by red lines on the chart. Yesterday’s bounce off the upper boundary of this triangle set a bearish tone for the pair, increasing the likelihood of a test of the lower line of the triangle. As always, the direction of the price will depend on the upcoming data. For those familiar with trading symmetric triangles, the strategy remains straightforward: a breakout and close above the upper line would serve as a signal to go long, while a break below the lower boundary of the triangle would be a strong signal to sell. Today’s Eurozone inflation data could trigger one of these breakouts.

Source: https://www.axiory.com/analytics/technical-analysis/weaker-german-inflation-and-eurozone-data-set-bear