• EUR/CAD steadied on Wednesday after China and the European Union slapped new trade barriers on U.S. goods, stoking worries that an intensifying trade war.
• European Union countries are set to approve their first countermeasures against Trump’s tariffs on Wednesday, joining China and Canada in escalating a conflict that could trigger a global trade war.
• Since Trump’s tariff announcement last week, stocks have fallen, the dollar weakened, and U.S. Treasuries sold off, sparking fears of a global financial crisis.
• The tariffs are expected to significantly impact the euro zone, with the ECB suggesting growth may be hit harder than the previously predicted half-point decline.
• Immediate resistance is located at 1.5716(38.2%fib), any close above will push the pair towards 1.5772 (Higher BB).
• Support is seen at 1.5564 (50%fib) and break below could take the pair towards 1.5396(61.8%fib).
Recommendation: Good to buy around 1.4580 , with stop loss of 1.4450 and target price of 1.4680