• USD/CAD dropped sharply on Monday after news that President Donald Trump's new administration would not immediately impose trade tariffs, sparking a rally in Canadian dollar.
• Canada has been central to Trump's tariff threats, with him pledging a 25% tariff on imports from the country, a key trading partner that exports the majority of its goods to the U.S.
• Trading volume was lighter than usual due to U.S. markets being closed for the Martin Luther King Jr. Day holiday.
• At GMT 21:07, the pair was down1.17 % at 1.4312, marking its highest lowest level since April 10.
• Immediate resistance is located at 1.4334(38.2%fib), any close above will push the pair towards 1.4505(23.6%fib).
• Support is seen at 1.4265(Daily low) and break below could take the pair towards 1.4486(38.2%fib).
Recommendation: Good to buy around 1.4270, with stop loss of 1.4180 and target price of 1.4410
