• EUR/CAD saw an initial rise but gave up gains as investors looked to reduce risk exposure in response to President Donald Trump's announcement of reciprocal tariffs.
•On Wednesday, Trump imposed a 10% tariff on U.S. imports, raising EU tariffs to 20% and China’s to 54%, with both countries promising retaliation.
.• The new tariffs heightened fears of an escalating global trade war, fueling concerns about an impending global recession.
• EU chief Ursula von der Leyen called the tariffs a significant setback for the global economy, warning that the 27-member bloc was ready to implement countermeasures if negotiations with Washington failed..
•At GMT 18:05, the pair was trading up 0.46 percent at 1.5544
• Immediate resistance is located at 1.5561(38.2%fib), any close above will push the pair towards 1.5756(23.6%fib).
• Support is seen at 1.5404(50%fib) and break below could take the pair towards 1.5304(Lower BB).
Recommendation: Be on sidelines
