FxWirePro: EUR/CAD climbs on weaker Canadian GDP data

 
• EUR/CAD rose higher on Friday as the Canadian dollar weakened in response to disappointing domestic growth figures.

• Data released Friday showed that Canada’s economy contracted in April on a monthly basis, as weakness in trade-sensitive sectors offset gains in services.

• Canada’s GDP shrank by 0.1% in April, driven by a 0.6% drop in goods-producing industries, which account for a quarter of the economy, Statistics Canada reported.

• The Bank of Canada is expected to maintain its policy rate at 2.75% on July 30, with investors assigning a 62% chance to a hold

• Technical indicators are   bullish,RSI is rising at 70.Daily momentum indicators (5-, 9-, and 11-DMAs) are trending higher, pointing to upward pressure.
 
•  Immediate resistance is located at 1.6093(Daily high), any close above will push the pair towards 1.6155(23.6%fib).

• Support is seen at 1.5895(38.2%fib) and break below could take the pair towards 1.5758 (SMA 20).

Recommendation: Good to buy around 1.6000 , with stop loss of 1.5940 and target price of 1.6150