FxWirePro: EUR/CAD extends fall, vulnerable to more downside

• EUR/CAD dipped on Wednesday  as gains in commodities continue to lift the Canadian dollar.

• Oil prices were steady in early trade, with Brent crude up 0.1% at $62.45 a barrel, but still on track for a third consecutive annual decline of 16%.

•On the data front, Canada’s economy contracted 0.3% in October, marking its largest decline in nearly three years, before a slight 0.1% rebound in November, surpassing forecasts.

• Markets spent the session absorbing the last major economic data ahead of the holiday period.

• On the monetary policy front, markets expect the next Fed chair to lean dovish, keeping the U.S. policy outlook central for investors next year.

• Europe’s rate path looks more hawkish into 2026 after the European Central Bank held rates last week, signalling a possible end to its easing cycle and a potential divergence from the Fed.

•  Immediate resistance is located at 1.6169(SMA 20), any close above will push the pair towards 1.6243 (38.2%fib).

•  Support is seen at 1.6102(50%fib) and break below could take the pair towards 1.6064(Lower BB).

Recommendation: Good to sell  around 1.6150 , with stop loss of 1.6230  and target price of 1.6080