• USD/CAD initially gained but retraced as uncertainty over Trump’s potential tariffs lingered.
•Trump did not immediately impose tariffs on Canada and Mexico but considered 25% duties starting Feb. 1, citing immigration and fentanyl concerns.
• Canadian Prime Minister Justin Trudeau said on Tuesday that his government is prepared to respond to any scenario if Trump imposes tariffs on Canada.
•On the data front,Canada's annual inflation rate slowed to 1.8% in December, slightly below expectations and down from 1.9% the previous month. The consumer price index fell 0.4% month-on-month.
• At GMT 16:03, the pair was up 0.12% at 1.4326, retreating from daily high hit earlier
• Immediate resistance is located at 1.4365(38.2%fib), any close above will push the pair towards 1.4500(Psychological level).
• Support is seen at 1.4286(Lower BB) and break below could take the pair towards 1.4236(50%fib).
Recommendation: Good to buy around 1.4300, with stop loss of 1.4220 and target price of 1.4500
