• USD/CAD dipped on Wednesday as loonie extended gains as trade disruption fears eased.
• U.S. President Trump imposed a 10% tariff on China, leading Beijing to retaliate with tariffs on U.S. imports, reigniting the trade war..
• Market volatility surged following Trump's tariff announcement on Canada and Mexico, though he later delayed them by a month..
• Data wise, Canada recorded its first trade surplus in 10 months in December, as exports outpaced imports. The trade surplus with the U.S. also grew for the second month in a row.
• Immediate resistance is located at 1.4420(SMA 5), any close above will push the pair towards 1.4516(38.2%fib).
• Support is seen at 1.4223(13th Dec low) and break below could take the pair towards 1.4072(61.8%fib).
Recommendation: Good to sell around 1.4340, with stop loss of 1.4410 and target price of 1.4230
