FxWirePro: EUR/CAD rebounds strongly; critical resistance lies ahead

• EUR/CAD rose sharply  on Monday as falling oil prices weighed on the Canadian dollar.

• Oil prices declined as worries over geopolitical tensions in Russia and the Middle East were offset by concerns about global oversupply.

•Data for August showed a 0.6% fall in Canadian raw material prices, while producer prices rose 0.5%, driven by cost increases in chemicals and various foodstuffs, including meat, fish, and poultry.

•Looking ahead, all eyes will be on Canada’s domestic GDP data, set for release on Friday. Economists and analysts are widely anticipating that the data will reflect continued economic softness, as the country grapples with trade uncertainties and subdued growth momentum.

•In the euro zone’s data calendar is relatively light, with highlights including PMIs across Europe, consumer confidence, the ECB’s inflation outlook, and Germany’s Ifo business survey.

• At GMT 16:34,the euro was last up  0.64% at 1.6300 against Canadian dollar 
 
•  Immediate resistance is located at 1.6318(23.6%fib), any close above will push the pair towards 1.3798(Higher BB).

• Support is seen at 1.6175(SMA 20) and break below could take the pair towards 1.6145(38.2%fib).

Recommendation: Good to buy around 1.6250 , with stop loss of 1.6150  and target price of 1.6370