• USD/CAD strengthened on Thursday but gains were limited as investors were cautious amid an intensifying trade war with the United States.
• U.S. President Donald Trump's inconsistent trade policies have sparked a global trade war, unsettling investors, consumers, and business confidence, while raising the risk of a recession both in the United States and Canada.
• The Bank of Canada, which implemented a 25-basis point interest rate cut on Wednesday, also expressed concerns about inflationary pressures and slower growth due to uncertainties surrounding tariffs.
• The Bank of Canada cautioned that a prolonged tariff war could dampen GDP growth and increase prices, making rate decisions more complicated.
• Immediate resistance is located at 1.4500 (23.6%fib), any close above will push the pair towards 1.4527(Higher BB).
• Support is seen at 1.4331(38.2%fib) and break below could take the pair towards 1.4284(March 7th low).
Recommendation: Good to buy around 1.4400, with stop loss of 1.4350 and target price of 1.4480
