FxWirePro:EUR/CAD recovers as trade optimism builds

• EUR/CAD initially dipped but recovered ground   as investors assessed more U.S. trade deals and whether the most severe of President Donald Trump's tariffs could be avoided.  

• The U.S. finalized a trade agreement with Japan on Tuesday, reducing steep import tariffs on Japanese goods in exchange for a $550 billion investment and loan package headed to the U.S.

• Hopes for an EU-U.S. trade deal rose after Trump announced on Tuesday that European officials would arrive for negotiations the following day.

• Markets remained resilient despite broad U.S. tariffs, buoyed by hopes that additional trade agreements could ease tensions ahead of Trump’s August 1 deadline.

• Technical signals are bullish  as RSI is heading up  at 57, daily momentum studies  5, 9 and 1 DMAs are trending north.

•  Immediate resistance is located at 1.5999(38.2%fib), any close above will push the pair towards 1.6075(July 7th high).

•  Support is seen at 1.5919(50%fib) and break below could take the pair towards 1.5899(Lower BB).

Recommendation: Good to buy  around 1.5970 , with stop loss of 1.5900 and target price of 1.6070