• EUR/CAD declined sharply on Wednesday after the Bank of Canada cut interest rates by half a percentage point as expected.
• The Bank of Canada cut its key policy rate by 50 basis points to 3.25% and signaled that future cuts would be more gradual, shifting from its previous stance on continuous easing.
• Money markets are pricing in a 60% chance of a 25 basis point rate cut by the BoC in January, with a 40% likelihood of no further cuts.
• At GMT 17:49,the euro was last down 0.55% at 1.4846 against Canadian dollar
• Immediate resistance is located at 1.4884(38.2%fib), any close above will push the pair towards 1.4979(23.6%fib).
• Support is seen at 1.4815(50%fib) and break below could take the pair towards 1.4741(61.8%fib).
Recommendation: Good to sell around 1.4860 , with stop loss of 1.4980 and target price of 1.4750
