• EUR/CAD initially gained but gave up ground as investors digested European Central Bank decision to keep interest rates unchanged.
• The ECB kept interest rates steady on Thursday as anticipated, while giving no guidance on its next steps, stressing that future decisions will depend on incoming data.
• European Central Bank President Christine Lagarde indicated on Thursday that there is no urgency to step into the bond market to support France, which is grappling with a political and fiscal crisis.
• The central bank cut its inflation outlook to 1.9% for 2027, down from June’s 2.0% projection, while core inflation is now expected at 1.8%, with both forecasts falling short of the 2% target.
• Immediate resistance is located at 1.6270 (23.6%fib), any close above will push the pair towards 1.6297(Higher BB).
• Support is seen at 1.6142(SMA 20) and break below could take the pair towards 1.6007(38.2%fib).
Recommendation: Good to buy around 1.6210 , with stop loss of 1.6130 and target price of 1.6290
