FxWirePro: USD/CAD hits five month low as inflation and recession concerns grow

• USD/CAD slipped to hit five month low on Friday  as U.S. dollar weakened driven by mounting fears of a recession and elevated inflation.

• Earlier this week, Trump granted a 90-day tariff pause for several countries, briefly calming markets, but recession fears resurfaced as tensions with China persisted.

• Meanwhile, China raised tariffs on U.S. imports to 125% on Friday, escalating tensions in the ongoing trade dispute between the world’s two largest economies.

• On the data front, U.S. producer prices unexpectedly dropped by 0.4% in March, though rising import tariffs are likely to push inflation higher in the months ahead.

•  Immediate resistance is located at 1.4007 (50%fib), any close above will push the pair towards 1.4113(April 10th high).

• Support is seen at 1.3878(38.2%fib) and break below could take the pair towards 1.3800(Psychological level).

Recommendation: Good to sell around 1.3930, with stop loss of 1.4000 and target price of 1.3820