• EUR/CAD initially dipped but recovered some ground as market digested eurozone business activity and Canadian trade balance data.
• Euro zone business activity picked up slightly in July from June but stayed sluggish due to weakening demand, a survey showed Tuesday..
• The HCOB Eurozone Composite PMI rose to 50.9 in July from 50.6 in June, slightly below the 51.0 flash estimate.
• Canada's trade deficit widened to C$5.9 billion in June as imports, boosted by a one-time oil equipment purchase, outpaced exports. Analysts had expected a C$6.3 billion gap..
• Technical signals are bullish as RSI is heading up at 51, daily momentum studies 5,9 and11 DMAs are trending up.
• Immediate resistance is located at 1.5960(SMA 20), any close above will push the pair towards 1.6134(23.6%fib).
• Support is seen at 1.5894(38.2%fib) and break below could take the pair towards 1.5784(Lower BB).
Recommendation: Good to buy around 1.5930, with stop loss of 1.5870 and target price of 1.5980
