• EUR/CAD climbed to a four-and-a-half-year high on Tuesday as the euro extended its gains amid optimism that a German defense spending deal could be finalized by the end of the week.
• Germany's Greens Party co-leader, Franziska Brantner, said in an interview that her party was willing to negotiate a deal for increased state borrowing to strengthen defense spending and support economic growth.
• Investors are closely watching negotiations between the Green Party and the party of likely next chancellor Friedrich Merz over a significant increase in state borrowing. For now, market sentiment suggests optimism that a deal will be reached..
•At GMT 15:21, the pair was trading up 0.95 percent at 1.5796
• Immediate resistance is located at 1.5858(Daily high), any close above will push the pair towards 1.5901(Psychological level).
• Support is seen at 1.5695(38.2%fib) and break below could take the pair towards 1.5543(50%fib).
Recommendation: Good to buy around 1.5750 with stop loss of 1.5620 and target price of 1.5850
