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FxWirePro: USD/CAD dips as tariff fears mount ahead of August 1 deadline

• 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

 

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