FxWirePro: EUR/CAD stuck in range but maintains bullish bias

• EUR/CAD edged higher  on Tuesday  but gains were limited as investors awaited a Canadian federal budget that could forecast wider fiscal deficits..

• Canada’s upcoming budget, to be presented by Prime Minister Mark Carney, is set to include a substantial stimulus push designed to lessen economic dependence on the U.S., raising concerns among economists about a potential post-pandemic record deficit.

• The plan introduces a clear division between operating and capital expenditures, aims to achieve an operating surplus within three years, and forecasts a gradual decline in the debt-to-GDP ratio.

• The Canadian dollar remains under pressure as crude prices, the country’s key export, extend their decline.

• Crude prices declined on Tuesday as a stronger U.S. dollar and soft manufacturing activity dampened demand, with OPEC+’s decision to delay production increases hinting at worries over a potential market glut.

 
•  Immediate resistance is located at 1.6253(SMA 20), any close above will push the pair towards 1.6294 (38.2%fib).

•  Support is seen at 1.6157(50%fib) and break below could take the pair towards 1.6097(Lower BB).

Recommendation: Good to buy  around 1.6180 , with stop loss of 1.6120  and target price of 1.6260