EURCAD recently fell through support at the 1.4675 level and dipped to a low of 1.4580 before pulling back up. A retest of the former floor might be in order, and the Fib retracement tool shows additional levels where sellers could be waiting.

The 38.2% level lines up with the broken support which might now hold as resistance, especially since it lines up with the 100 SMA dynamic inflection point. A larger correction could reach the 50% level near the 1.4700 mark or the 61.8% Fib at 1.4732.

If any of these hold as resistance, EURCAD could resume the drop to the swing or create new ones. The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is likely to gain traction.

Stochastic is still on the move up, though, so bullish pressure could stay in play for a bit longer until overbought conditions are met. Turning lower would confirm that sellers ready to return. RSI has more room to climb before reaching the overbought zone, so a larger correction is possible.

There are no major reports lined up from the eurozone today, so EURCAD might take cues mostly from the BOC interest rate statement. The central bank is expected to keep rates on hold at 5.00% this time but still keep the door open for more tightening, especially since the latest CPI suggested that inflationary pressures remain persistent.

A surprise rate hike or a hawkish hold could mean more upside for the Canadian currency, as this would leave the BOC as one of the more aggressive central banks while others are shifting to a cautious stance. Recall that the ECB suggested that they may be approaching the peak of their tightening cycle, and the latest batch of data underscores this change in outlook.