• USD/CAD strengthened on Thursday as concerns over the potential threat of U.S. tariffs on Canada put pressure on the Canadian dollar.
• U.S. President-elect Donald Trump is due to take office on Jan. 20 and is promising to impose a 25% tariff on all imports from Canada.
•On the data front, Canadian manufacturing activity increased at the fastest pace in nearly two years in December.
• The S&P Global Canada Manufacturing PMI increased to 52.2 in December from 52.0 in November, marking its highest level since February 2023 and the fourth consecutive month above the 50.0 no-change threshold.
• At GMT 16:06, the pair was up 0.39 % at 1.4438, marking its highest level since 30th December.
• Immediate resistance is located at 1.4437 (23.6%fib), any close above will push the pair towards 1.4516(Higher BB).
• Support is seen at 1.4348(38.2%fib) and break below could take the pair towards 1.4270(50%fib).
Recommendation: Good to buy around 1.4420, with stop loss of 1.4330 and target price of 1.4500