• EUR/CAD surged to 4- year high on Wednesday as the euro gained momentum amid optimism over Germany's proposed infrastructure fund.
• Europe's growth outlook improved as Germany's proposed €500 billion infrastructure fund aimed to counter global trade tensions.
• Germany's 10-year bond yield surged 19 basis points to 2.670%, while the 30-year yield rose 15 bps to 2.97%, briefly marking the largest daily jump since October 1998.
• At GMT 16:08,the euro was up 1.24% at 1.5478 against Canadian dollar ,its highest level since 1st February 2021.
• Technical signals are bullish as RSI is heading up at 80, daily momentum studies 9, 14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.5484(Daily high), any close above will push the pair towards 1.5535 (23.6%fib).
• Support is seen at 1.5387 (38.2%fib) and break below could take the pair towards 1.5277 (50%fib).
Recommendation: Good to buy around 1.5460, with stop loss of 1.5380 and target price of 1.5500
