EUR/CAD has been impulsively bullish recently resulting to surging up higher towards 1.5050-75 resistance area but yesterday due to dovish statements at ECB Press Conference and unchanged Minimum Bid Rate report EUR lost significant grounds against CAD. Recently CAD Overnight Rate report was published unchanged as expected at 1.00% which affected the growth of CAD against EUR and helped EUR to gain momentum. Today EUR German Import Prices report was published with an increase to 0.9% from the previous value of 0.0% which was expected to be at 0.5%. The positive economic report did not quite help the EUR to gain against CAD today which does signal that the market sentiment is currently against the EUR and CAD is expected to gain further momentum in the coming days. To sum up, EUR has lost significant ground against CAD recently which is expected to inject further bearish pressure in the pair before showing any bullish intervention in the coming days with some high impact economic reports.
Now let us look at the technical view, the price is currently residing below the resistance area of 1.5050-75 with a daily false break candle formation. The overall structure is still quite corrective and as the price remains inside the corrective range and below the resistance of 1.5050-75 area further bearish pressure is expected in this pair with the target towards 1.4700 support area.
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