Canadian Dollar jumps broadly after surprisingly hawkish BoC policy decision. USD/CAD and CAD/JPY are still bounded in range. But EUR/CAD is taking the lead with downside breakout.
The break of 1.4317 in EUR/CAD suggests resumption of fall from 1.5096. More importantly, it’s now resuming the medium term down trend. Sustained trading below 1.4317 will confirm the breakout and pave the way to 100% projection of 1.5783 to 1.4580 from 1.5096 at 1.3839. In any case, outlook will stay bearish as long as 1.4439 resistance holds, even in case of recovery.
GBP/CAD will be a focus now too as it’s diving towards 1.6889 support. Firm break there will resume the fall from 1.7623, and the decline from 1.57784 too. 100% projection of 1.7884 to 1.6849 from 1.7623 at 1.6588 will be next target.
