FxWirePro: EUR/CAD gives back chunk of early gains, eyes another drop

• EUR/CAD initially gained but gave up ground  as investors  braced for next week's rate decisions from the   European Central Bank.

• A Reuters survey shows that a majority of economists believe the ECB will keep rates unchanged on December 18 and leave them on hold for all of next year..

• Euro zone inflation inched up to 2.2% in November from 2.1% in October, but has largely remained anchored near the ECB’s 2% target this year...

• The economy also expanded by nearly 1.5% on average over the past two quarters, indicating the central bank has little immediate pressure to alter its policy rates. 

• Christine Lagarde said on Wednesday that the euro area’s surprisingly resilient performance in the face of global uncertainty and trade frictions could lead the ECB to revise its growth forecasts higher next month.  

• The ECB cut its main interest rates by a total of two percentage points over the year to June and has kept them unchanged ever since.
 
•  Immediate resistance is located at 1.6211(50%fib), any close above will push the pair towards 1.6267 (Dec6th high).

•  Support is seen at 1.6120(38.2%fib) and break below could take the pair towards 1.6086(Lower BB).

Recommendation: Good to sell around 1.6180 , with stop loss of 1.6220  and target price of 1.6100