FxWirePro: EUR/CAD holds in tight range ahead of U.S. payrolls data

• EUR/CAD was little changed on Thursday as  investors digested a raft of recent economic data and looked ahead to Friday’s U.S. non-farm payrolls report. 

• Data showed Canadian manufacturing activity declined at its fastest pace since the onset of the COVID-19 pandemic, as uncertainty over U.S. trade policy dampened production and weakened new orders.

• US Initial jobless claims rose by 18,000 to 241,000 for the week ending April 26, marking the highest level since February and signaling a potential softening in the labor market.

• A separate report showed U.S. manufacturing activity declined again in April, with the ISM Manufacturing PMI falling to 48.7, a five-month low, though slightly above expectations, signaling continued contraction in the sector.

• Market participants are closely watching Friday’s U.S. nonfarm payrolls report for clues on the timing of potential Federal Reserve rate cuts.

•  Immediate resistance is located at 1.5773(38.2%fib), any close above will push the pair towards 1.5811(April28th high).

•  Support is seen at 1.5566(50%fib) and break below could take the pair towards 1.5498(Lower BB).

Recommendation: Good to sell  around 1.4560 , with stop loss of 1.4650  and target price of 1.4490