• EUR/CAD initially gained but reversed course as higher oil prices boosted Canadian dollar across the board.
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• The price of oil , one of Canada's major exports, rose 1.4% to $64.44 a barrel on renewed concerns that tensions between the U.S. and Iran could lead to oil supply disruptions.
• Focus now shifts to key U.S. data this week, especially the delayed Nonfarm Payrolls report and the Consumer Price Index.
• The upcoming data could be crucial in guiding the U.S. dollar’s near-term direction as traders assess the timing of the first rate cut this year.
• Technical signals are bearish as RSI is heading down at 48, daily momentum studies 11,14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.6178(SMA 20), any close above will push the pair towards 1.6225 (50%fib).
• Support is seen at 1.6111(23.6%fib) and break below could take the pair towards 1.6049 (Psychological level).
Recommendation: Good to sell around 1.6160 , with stop loss of 1.6220 and target price of 1.6100
