• EUR/CAD rose on Tuesday as investors assessed trade developments, which boosted demand for the euro over the Canadian dollar amid shifting market sentiment.
• Trump’s July 9 deadline has intensified focus on global trade talks, but significant agreements remain limited.
• Markets were also awaiting a resolution to Trump's tax-cut and spending legislation, which U.S. Senate Republicans were struggling to pass..
• On the data front, Euro zone manufacturing improved in June as new orders stopped falling for the first time in over three years, signaling possible sector stabilisation..
• The HCOB Manufacturing PMI rose slightly to 49.5 in June from 49.4 in May, its highest since August 2022, but stayed below the 50 mark for the 29th straight month..
• Technical highlight upside risks for EUR/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north
• Immediate resistance is located at 1.6099(23.6%fib), any close above will push the pair towards 1.6170(Higher BB).
• Support is seen at 1.6000(Psychological level) and break below could take the pair towards 1.5905(38.2%fib).
Recommendation: Good to buy around 1.6050 , with stop loss of 1.5900 and target price of 1.6130
