• EUR/CAD slipped below 1.5800 level on Wednesday as a lopsided U.S.-EU trade deal revived concerns about the Eurozone economic outlook
• The recently finalized trade pact is widely seen as favoring U.S. exporters, triggering fears over slower Eurozone growth and reduced corporate earnings.
• Eurozone Q2 GDP came in at a modest +0.1%, with an annual increase of 1.4%, market confidence remains fragile.
•Meanwhile, the Bank of Canada left its key interest rate unchanged at 2.75% for the third straight meeting, noting that fears of a worsening global trade war have eased..
• 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 1.5871(38.2%fib), any close above will push the pair towards 1.5975(SMA20).
• Support is seen at 1.5977(Daily low) and break below could take the pair towards 1.5649(50%fib).
Recommendation: Good to sell around 1.5820, with stop loss of 1.5900 and target price of 1.5760
