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• EUR/CAD eased towards 1.5650 level on Tuesday as euro attracted sellers after cooler than expected euro zone May inflation.
• Eurozone inflation dropped below the ECB’s target in May due to low services costs, boosting hopes for further policy easing despite trade tensions.
• Eurozone consumer inflation slowed to 1.9% in May from 2.2% in April, below the 2.0% forecast, driven by falling energy prices and a sharp drop in services inflation.
• Looking ahead, markets await the ECB’s rate decision on Thursday and key U.S. jobs data on Friday for fresh policy cues.
• Immediate resistance is located at 1.5725(38.2%fib), any close above will push the pair towards 1.5761(Higher BB).
• Support is seen at 1.5605(Daily low) and break below could take the pair towards 1.5524(38.2%fib).
Recommendation: Good to buy around 1.5600 , with stop loss of 1.5530 and target price of 1.5710
