FxWirePro: USD/CAD loses momentum Amid rising U.S.-China trade concerns

• USD/CAD initially gained but gave up ground   as renewed jitters over U.S.-China trade tensions unsettled   markets. 

• Global sentiment turned cautious as tensions flared between Washington and Beijing over rare earths, crucial for electric vehicles, aircraft engines, and military radar systems.

• Even with occasional signs of easing, U.S. and China tensions persist, highlighted by the imposition of extra port fees on shipping firms.

On the data front, Canada’s building permits dropped 1.2% to C$11.6 billion in August 2025, reflecting a decline in residential construction plans.  

•  Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.

•  Immediate resistance is located at 1.4080(23.6%fib), any close above will push the pair towards 1.4115(Higher BB).

• Support is seen at 1.3982 (38.2%fib) and break below could take the pair towards 1.3925 (SMA 20).

Recommendation: Good to buy  around 1.4010, with stop loss of 1.3950 and target price of 1.4100