FxWirePro: EUR/CAD falls to three week low following BoC’s rate cut

• EUR/CAD fall sharply to hit three week low on Wednesday as the Canadian dollar strengthened following the Bank of Canada’s widely expected 25-basis-point rate cut.

• The Bank of Canada lowered its benchmark overnight rate by 25 basis points to 2.25% at its October 2025 meeting, in line with market expectations.

• The 25-basis-point cut, the second consecutive reduction, brings the policy rate to its lowest level since July 2022.

• Governor Tiff Macklem said the Bank of Canada remains prepared to adjust policy if the economic outlook changes significantly. He noted the latest rate cut aims to support the economy amid disruptions from U.S. tariffs while keeping inflation close to the 2% target.

• Focus now shifts to the U.S. Federal Reserve’s policy decision, with markets widely pricing in a 25-basis-point rate cut.

•  Immediate resistance is located at 1.6251(Daily high), any close above will push the pair towards 1.6288 (SMA 20).

•  Support is seen at 1.6181(50%fib) and break below could take the pair towards 1.6147(Lower BB).

Recommendation: Good to sell  around 1.6210 , with stop loss of 1.6300  and target price of 1.6140