• EUR/CAD rose on Monday as falling oil prices and rising geopolitical tensions weighed the loonie.
• Broader risk-off sentiment, driven by escalating geopolitical tensions in the Middle East, also contributed to reduced appetite for commodity-linked currencies, further lifting EUR/CAD.
• On the data front,Euro zone growth stalled for a second consecutive month in June, with HCOB's flash composite PMI steady at 50.2, as modest service sector gains were offset by ongoing manufacturing weakness.
• Separate data showed Germany's business activity returned to growth in June, with the HCOB flash composite PMI rising to 50.4 from 48.5 in May, surpassing analyst expectations.
• Technical highlight upside risks for EUR/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.
• Immediate resistance is located at 1.5845(June 12th high), any close above will push the pair towards 1.5942(23.6%fib).
• Support is seen at 1.5750(38.2%fib) and break below could take the pair towards 1.56881(SMA 20).
Recommendation: Good to buy around 1.5830 , with stop loss of 1.5730 and target price of 1.5900
