• EUR/CAD eased slightly on Tuesday as traders weighed up U.S. trade policy and hoped negotiations with Washington could help avert an escalating dispute.
.• The European Commission proposed a "zero-for-zero" tariff deal on Monday as EU ministers prioritized talks ahead of President Trump's 20% tariff on the EU, set to take effect Wednesday.
•On Tuesday, ECB policymaker Yannis Stournaras warned that higher inflation and a global trade war triggered by U.S. tariffs could delay the normalization of euro zone monetary policy.
•The market will be closely watching how other U.S. trading partners respond to the tariffs imposed by the U.S. These reactions could include retaliatory tariffs, trade restrictions, or diplomatic negotiations aimed at countering the impact.
• Immediate resistance is located at 1.5572(23.6%fib), any close above will push the pair towards 1.5767(Higher BB).
• Support is seen at 1.5503(38.2%fib) and break below could take the pair towards 1.5330(50%fib).
Recommendation: Good to buy around 1.5500 with stop loss of 1.5450 and target price of 1.5600
