2026-02-04 04:47:00
EUR/CAD may have broken an established trend, but both bulls and bears are still locked in on the same key levels!
The pair is back at major support, where either fresh 2026 lows open up, or buyers step in again.
Here’s what we’re seeing on the daily time frame:
Improved risk sentiment, mixed mid-tier Euro Area data, and anticipation ahead of this week’s ECB policy decision have pushed traders to trim euro exposure in recent sessions.
Meanwhile, the Canadian dollar has picked up some support as crude oil prices rebound, US-Canada trade tensions ease, and risk appetite stays constructive.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Canadian dollar and the euro, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/CAD broke below an established trendline support in late December, made a run at 1.6400 earlier this month, then quickly ran into sellers, pushing the pair back toward the 1.6100 area.
EUR/CAD being drawn back to the 1.6100 handle is about as surprising as Olivia Dean winning Best New Artist at the Grammys. See, the area acted as both support and resistance back in mid-2025 and again in December, so traders already know it’s a big deal.
This time around, 1.6100 also lines up with the daily 200 SMA and sits just above the S1 Pivot Point near 1.6000, giving the area even more technical weight.
If bullish candlesticks start showing up and price holds above 1.6200, EUR/CAD could work its way back toward the 1.6300 prior highs and potentially rebuild higher highs and higher lows.
But if sellers stay in control, the pair could slide toward the 1.6000 zone, where bulls and bears are likely to battle it out and possibly kick off a broader downtrend.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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