• EUR/CAD initially gained but gave up ground as markets digested Bank of Canada and Federal Reserve policy decision
• The Bank of Canada lowered its key policy rate by 25 basis points to a three-year low of 2.5%, its first cut in six months, citing a soft labor market and easing inflation pressures.
• The Fed reduced interest rates by 25 basis points and signaled a steady pace of cuts through the rest of the year, while Chair Jerome Powell emphasized that decisions will be made on a “meeting-by-meeting” basis.
• Technical are favoring bullish sentiment as RSI is at 61 and the pair is trading above 11,14 & 21-DMAs.
• Immediate resistance is located at 1.6339 (Higher BB), any close above will push the pair towards 1.6365(23.6%fib).
• Support is seen at 1.6173 (SMA 20) and break below could take the pair towards 1.6103(38.2%fib).
Recommendation: Good to buy around 1.6260 , with stop loss of 1.6200 and target price of 1.6350
