USD/CAD strengthened on Tuesday as the Canadian dollar weakened after investors priced in U.S. President Donald Trump's announcement of new tariffs on Canadian metals.
• On Tuesday, Trump doubled the planned tariff on all steel and aluminum imports from Canada to 50% in response to Ontario imposing levies on electricity exports to the U.S.
• Global markets have been volatile ever since Trump initiated a series of tariff exchanges with major trading partners, including Canada, Mexico, and China.
• Investors are focused on the Bank of Canada's monetary policy decision on Wednesday, with traders anticipating a 25-basis-point rate cut to support the economy.
•At GMT 15:40, the pair was trading up 0.40 percent at 1.4470
• Immediate resistance is located at 1.4657(23.6%fib), any close above will push the pair towards 1.4747(High BB ).
• Support is seen at 1.4372(38.2%fib) and break below could take the pair towards 1.4130(50%fib).
Recommendation: Good to buy around 1.4450 with stop loss of 1.4350 and target price of 1.4680
