Canadian Dollar surges after BoC left interest rate unchanged at the “effective lower bound” of 0.25% and painted an upbeat picture. EUR/CAD’s strong break of 1.5313 support now confirms resumption of whole decline from 1.5978. Near term outlook will stay bearish as long as 1.5477 resistance holds. EUR/CAD should now target 100% projection of 1.5978 to 1.5313 from 1.5783 at 1.5118.
We’d tentatively look for bottoming signal between 1.5054 and 1.5118 to contain downside and bring rebound. But decisive break would open up deep medium term fall to 161.8% projection at 1.4704.
