• EUR/CAD strengthen on Wednesday as Canadian dollar weakened after BoC cuts rates by 25 basis points to 3% as expected.
• The Bank of Canada cut its policy rate by 25bps to 3%, lowered growth forecasts, and warned of potential economic damage from a U.S. tariff war.
• Wednesday's rate cut was the sixth consecutive reduction by the Bank of Canada. While inflation remains within the 1-3% target range, economic growth remains sluggish.
• The central bank raised its inflation forecast to 2.3% for 2025 (from 2.2%) and to 2.1% for 2026 (from 2.0%), excluding the potential impact of U.S. tariffs.
• Technical signals are bullish as RSI is heading up at 60, daily momentum studies 9, 11 and 14 DMAs are trending up.
• Immediate resistance is located at 1.5108(23.6%fib), any close above will push the pair towards 1.5146 (Higher BB).
• Support is seen at 1.4994(38.2%fib) and break below could take the pair towards 1.4897(50%fib).
Recommendation: Good to buy around 1.5000, with stop loss of 1.4900 and target price of 1.5180
