• EUR/CAD advanced on Friday as Canadian GDP and in-line U.S. inflation data boosted investor sentiment.
• Data on showed, Canada’s monthly GDP rebounded from three months of contraction to grow by 0.2% in July, with mining, manufacturing and wholesale trade boosting growth.
• Canada’s economic growth slowed in recent months after a robust start to the year, as a wave of U.S. tariffs hit key sectors of the economy, dampening momentum.
• U.S. Personal Consumption Expenditures index was in-line with expectations, increasing bets that the Federal Reserve might further lower rates this year.
• Technical are bullish, daily RSI is bullish at 58, daily momentum studies 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.6367(23.6%fib), any close above will push the pair towards 1.6428 (Higher BB).
• Support is seen at 1.6228 (SMA 20) and break below could take the pair towards 1.6103 (38.2%fib).
Recommendation: Good to buy around 1.6280, with stop loss of 1.6200 and target price of 1.6370
