• EUR/CAD rose on Wednesday as investors welcomed softer-than-expected U.S. inflation figures.
• Cooler-than-expected Consumer Price Index (CPI) data for the month of May calmed concerns around tariff-driven price pressures and fanned expectations for interest rate cuts by the U.S. Federal Reserve.
• The U.S. CPI rose 0.1% in May, down from 0.2% in April, while the annual rate accelerated to 2.4%.
• Meanwhile,ECB chief economist Philip Lane said the recent rate cut should support inflation returning to the 2% target after a temporary dip. Governing council member Gabriel Makhlouf added that rates are now likely to stay steady for the foreseeable future.
• Immediate resistance is located at 1.5767(38.2%fib), any close above will push the pair towards 1.5821(April 28th high).
• Support is seen at 1.5569(50%fib) and break below could take the pair towards 1.5539(Lower BB).
Recommendation: Good to buy around 1.5670 , with stop loss of 1.5560 and target price of 1.5800
