• EUR/CAD surged Friday as unexpected Canadian August job losses boosted bets on a Bank of Canada rate cut.
• Canada shed 65,500 jobs in July, mostly part-time, pushing the unemployment rate up to 7.1%, Statistics Canada reported Friday.
• The average hourly wage for permanent employees rose 3.6% to C$37.81 in August, up from 3.5% in July, a key indicator for the Bank of Canada on inflation trends.
• Money markets now price a nearly 90% chance of a Sept. 17 rate cut, up from 72% before the jobs data.
• Immediate resistance is located at 1.6211(23.6%fib), any close above will push the pair towards 1.6242 (Higher BB).
• Support is seen at 1.6107 (SMA 20) and break below could take the pair towards 1.598 (Lower BB).
Recommendation: Good to buy around 1.6180, with stop loss of 1.6120and target price of 1.6280
