• EUR/CAD steadied on Tuesday after the German parliament elected conservative leader Friedrich Merz as chancellor.
• Conservative leader Friedrich Merz was elected German chancellor in a second round of voting, following an unexpected initial defeat earlier in the day.
• The move supported euro demand against the Canadian dollar, which remained under pressure following softer oil prices and a narrowing Canadian trade surplus.
• On the data front,Canada's trade deficit narrowed to C$506 million ($366.34 million) in March, beating expectations as imports fell at a faster rate than the drop in exports.
• Immediate resistance is located at 1.5758(April 30th high), any close above will push the pair towards 1.5854(23.6%fib).
• Support is seen at 1.5606(38.2%fib) and break below could take the pair towards 1.5545(Lower BB).
Recommendation: Good to buy around 1.5630, with stop loss of 1.5550, and target price of 1.5730
