• EUR/CAD initially dipped but recovered some ground as investors assessed messages the day before from the Bank of Canada central bank cut interest rates.
• A dovish Bank of Canada, despite offering no forward guidance left the loonie vulnerable to further euro strength.
• On Wednesday, Canada’s central bank trimmed its key interest rate to 2.5%, a three-year low, marking its first rate cut since March and leaving the door open for more reductions should downside risks intensify.
• Adding to headwinds for the loonie, the price of oil was down 0.9% at $63.48 a barrel. Oil is one of Canada's major exports.
• Technical are bullish, daily RSI is bullish at 60, daily momentum studies 14 and 21 DMAs are trending up.
• Immediate resistance is located at 1.6350(23.6%fib), any close above will push the pair towards 1.6384(Higher BB).
• Support is seen at 1.6167(SMA 20) and break below could take the pair towards 1.6080(38.2%fib).
Recommendation: Good to buy around 1.6250 , with stop loss of 1.6150 and target price of 1.6350
