• EUR/CAD initially gained but gave up some ground as investors digested Bank of Canada Interest rate decision.
• The Bank of Canada kept its key interest rate steady at 2.75% on Wednesday, pausing after seven straight cuts.
• The central bank also cautioned that U.S. tariffs could trigger a spike in inflation and potentially lead to a deep recession in a worst-case scenario.
• Later today, investors will closely watch Federal Reserve Chair Jerome Powell's comments for insights into the Fed's approach to recent market volatility and rising economic concerns.
• At GMT 16:30,the euro was up 0.19% at 1.5780 against Canadian dollar .
•Technical signals are bearish as RSI is heading up at 68, daily momentum studies 5, 9 and 1 DMAs are trending up.
• Immediate resistance is located at 1.5860(Daily high), any close above will push the pair towards 1.5929 (23.6%fib).
• Support is seen at 1.5730 (38.2%fib) and break below could take the pair towards 1.5569(50%fib).
Recommendation: Good to buy around 1.5750, with stop loss of 1.5650, and target price of 1.5900
