• EUR/CAD dipped on Friday as preliminary Canadian data for August retail sales supported the view that the economy could avoid a second straight quarterly decline
• Canadian retail sales fell 0.8% in July, matching expectations, but an advance reading for August showed sales rebounding by 1%.
• The Bank of Canada surprised markets on Wednesday by cutting its key rate to a three-year low of 2.5% and signaled it may ease further if needed.
• Technical are bullish, daily RSI is bullish at 53, daily momentum studies 14 and 21 DMAs are trending up.
• Immediate resistance is located at 1.6271(Daily high), any close above will push the pair towards 1.6381(23.6%fib).
• Support is seen at 1.6180(38.2%fib) and break below could take the pair towards 1.6042(50%fib).
Recommendation: Good to buy around 1.6180 , with stop loss of 1.6120 and target price of 1.6250
