• USD/CAD steadied on Monday as investors assessed a trade deal between the U.S. and the European Union ahead of the August 1 tariff deadline.
• The U.S. reached a framework trade deal with the EU on Sunday, setting a 15% import tariff on most EU goods—half the initially threatened rate.
•The U.S.-EU trade deal has helped avert a potentially more damaging standoff between the two economic powerhouses, which together account for nearly a third of global trade.
• Other countries are racing to finalize trade deals ahead of the August 1 tariff deadline, but U.S. President Donald Trump said Friday that a deal with Canada may not materialize.
• This week, investors will closely watch the policy decisions from both the U.S. Federal Reserve and the Bank of Canada, as markets seek further clarity on the future trajectory of interest rates amid persistent inflation concerns.
• Immediate resistance is located at 1.3750(38.2%fib), any close above will push the pair towards 1.3788(Higher BB).
• Support is seen at 1.3674 (SMA 20) and break below could take the pair towards 1.3590 (23.6%fib).
Recommendation: Good to buy around 1.3690, with stop loss of 1.3620 and target price of 1.3760
