• EUR/CAD gained modestly as markets turned their attention to next week’s Bank of Canada policy meeting.
• Most economists expect the Bank of Canada to cut its overnight rate by 25 basis points on September 17 as the labor market weakens and economic activity slows..
• Canada’s central bank faces mounting pressure to resume easing after keeping rates unchanged since March, following a total 225-basis-point cut—among the largest reductions in the G10.
• Official data last week showed Canada’s economy lost 65,500 jobs in August, lifting the unemployment rate to a nine-year high outside pandemic periods.
• Immediate resistance is located at 1.6260 (23.6%fib), any close above will push the pair towards 1.6297(Higher BB).
• Support is seen at 1.6195(Sep11 th low) and break below could take the pair towards 1.6145(38.2%fib).
Recommendation: Good to buy around 1.6230 , with stop loss of 1.6160 and target price of 1.6300
