FxWirePro: EUR/CAD range bound as markets await Fed, BoC decisions

• EUR/CAD traded in tight range on Monday as   investors stayed cautious ahead of key policy decisions from both the Bank of Canada and the U.S. Federal Reserve.

• The Fed’s rate decision will be the main focus this week, with markets widely expecting a 25-basis-point cut on Wednesday following signs of a weakening U.S. labor market.

•  The BoC is forecast to cut its overnight rate by a quarter point on September 17 as growth slows, with economists anticipating an additional reduction next quarter.

•Canada’s central bank is under pressure to resume easing after holding rates steady since March, following a cumulative 225-basis-point reduction   among the most aggressive in the G10.

• Meanwhile,  Several other central banks will also announce their policy decisions this week, including those in the UK and Japan.

•Technicals are favoring bullish sentiment as RSI is at  63 and the pair is trading above   5,9 &11-DMAs.

• Immediate resistance is located at 1.6275(23.6%fib), any close above will push the pair towards 1.6322(Higher BB).

• Support is seen at 1.6145 (SMA20) and break below could take the pair towards 1.6021 (38.2%fib).

Recommendation: Good to buy around 1.6230, with stop loss of 1.6150 and target price of 1.6300