USD/CAD Returns to Flat After Post-CPI Selloff Correction

USD/CAD has corrected back to unchanged on the day after yesterday's sharp decline triggered by weaker-than-expected U.S. CPI data. The pair had fallen decisively below the key support zone between 1.4125 and 1.4143, breaking beneath the 100-hour moving average and an upward-sloping trendline that had guided the rally since May 1. The initial breakdown was significant from a technical perspective, as sellers maintained pressure even after the first move lower, reinforcing the bearish case. However, today's session has seen buyers step back in, reclaiming lost ground and returning the pair to its opening level. The bounce suggests the support break may not yet be definitive, with the 1.4125–1.4143 zone now acting as potential resistance on any retest. Traders should watch whether the pair can sustain above this area or if sellers reassert control. The broader context remains USD-negative following soft inflation data, but the correction highlights the importance of confirmation before committing to directional trades.