• USD/CAD eased on Tuesday amid mounting worries over the economic consequences of upcoming U.S. tariffs weighed on dollar.
• Speaking with the August 1 deadline fast approaching, Treasury Secretary Scott Bessent emphasized on Monday that the U.S. is focused more on securing strong trade agreements than rushing to meet the timeline.
• Bessent noted that any extension of the deadline for nations in constructive negotiations would be up to President Donald Trump.
• Adding to market unease were fears about the Federal Reserve’s independence, as Trump stepped up pressure on Chair Jerome Powell for not cutting rates, even demanding he step down..
• Immediate resistance is located at 1.3668(SMA 20), any close above will push the pair towards 1.3766(38.2%fib).
• Support is seen at 1.3554(23.6%fib) and break below could take the pair towards 1.3530(Lower BB).
Recommendation: Good to buy around 1.3600, with stop loss of 1.3530 and target price of 1.3690
