• EUR/CAD firmed on Wednesday as Canadian dollar weakened after data showed a deeper downturn in the manufacturing sector.
• Canada Manufacturing PMI dropped to 47.7 from 48.3, marking the eighth consecutive month below 50, indicating ongoing contraction.
• The prolonged slump, fueled by weak exports and tariff pressures, marked the eighth straight month of contraction, highlighting the mounting uncertainty confronting manufacturers.
• Investors are pricing in a 55% probability that the Bank of Canada will cut interest rates at the upcoming meeting.
• Bank of Canada lowered its benchmark rate by 25 basis points to 2.50% last month, marking its first reduction since March.
• Immediate resistance is located at 1.6385 (23.6%fib), any close above will push the pair towards 1.6419 (Higher BB).
• Support is seen at 1.6249(SMA 20) and break below could take the pair towards 1.6125(38.2%fib).
Recommendation: Good to buy around 1.6330 , with stop loss of 1.6270 and target price of 1.6400
