EUR/CAD Drops Through Support After CPI — Bearish Signal Active

In today’s technical analysis, we’re looking at EUR/CAD, which suffered a sharp drop following yesterday’s Canadian inflation release. The sell-off triggered a clear technical breakdown, and the chart now leans heavily in favor of the bears.

The drop came with conviction, as the price broke through two major support levels — the first marked in yellow, and the second in red. That dual breakdown acted as a strong signal to sell, confirming a shift in short-term momentum.

Overnight, we’ve seen a mild bullish correction, but for now, it’s stalling at the first resistance level, which is the previous red support zone. This is typical behavior following a breakdown — former support becoming new resistance.

As long as the price remains below the red and yellow areas, sentiment stays clearly negative, and this rebound is nothing more than a technical pullback.

Only a decisive move back above the yellow zone would flip the script and trigger a buy signal — but given the strength of yesterday’s selloff, that scenario currently looks unlikely.

For now, EUR/CAD is under pressure, and the path of least resistance remains to the downside.

Source: https://www.axiory.com/analytics/technical-analysis/eur-cad-drops-through-support-after-cpi-bearish-si