EUR/CAD reverses daily gains after BoC decision

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - EUR/CAD continued to pull back from 5 ½-year highs above 1.6100 and turned negative for the day following Bank of Canada decision to stay on hold.

    The Bank of Canada decided to maintain the cash rate at 0.5%, against some expectations of a 25 bps cut. However, the BoC lowered its growth forecast for 2016, and said the recent decline in oil and other commodities prices is a "setback" for the Canadian economy.

    EUR/CAD fell more than 200 pips in a matter of second and hit a fresh daily low of 1.5784 before finding support. At time of writing, the pair was trading at 1.5860, 0.25% below its opening price, having peaked at 1.6104 earlier on the day.

    EUR/CAD technical levels

    As for technical levels, immediate supports are seen at 1.5785 (Jan 20 low) and 1.5649 (10- day SMA). On the upside, above 1.6104, next resistances could be found at 1.6116 (Jul 14 2009 high) and 1.6261 (Jul 13 2009 high).
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