• EUR/CAD initially gained but gave up ground as investors digested Bank of Canada interest rates decision and awaited a policy decision by the Federal Reserve.
• As widely anticipated, the Canadian central bank stayed on the sidelines after cutting its benchmark rate to a three-year low of 2.25% in October.
• Governor Tiff Macklem said the economy has broadly withstood the impact of U.S. trade measures, though uncertainty remains elevated.
• Investors have priced in about 33 basis points of BoC tightening in 2026, down from 35 basis points before the rate decision.
• Looking ahead, investors were awaiting the U.S. Federal Reserve’s policy meeting later in the day.
• The Federal Open Market Committee (FOMC) will deliver its interest-rate decision at 2:00 p.m. ET (1900 GMT), followed by remarks from Chair Jerome Powell at 2:30 p.m. ET (1930 GMT)..
• Immediate resistance is located at 1.6144(Daily high), any close above will push the pair towards 1.6233 (Higher BB).
• Support is seen at 1.6078(38.2%fib) and break below could take the pair towards 1.6051 (Lower BB).
Recommendation: Good to sell around 1.6120 , with stop loss of 1.6220 and target price of 1.6020
