• EUR/CAD edged higher initial on Tuesday but later retreated as investors cautiously scoured for more clarity on U.S. President Donald Trump's trade policies.
• On Monday, U.S. President Donald Trump suggested the possibility of exemptions to the 25% tariffs imposed on imports of automobiles and auto parts.
• This came after Friday’s decision to exempt smartphones, computers, and certain other electronics from Trump’s "reciprocal" tariffs.
• Trump initially introduced reciprocal tariffs globally on April 2, only to reverse those duties last week for a 90-day period, causing market volatility.
• Investors are now awaiting the European Central Bank's policy meeting on Thursday, with markets broadly expecting a 25-basis-point rate cut.
• Immediate resistance is located at 1.5874(23.6%fib), any close above will push the pair towards 1.5924(April 11th high).
• Support is seen at 1.5677(38.2%fib) and break below could take the pair towards 1.5513(50%fib).
Recommendation: Good to buy around 1.5700 , with stop loss of 1.5520 and target price of 1.5930
