FxWirePro: USD/CAD neutral in the near term, scope for downward resumption

• USD/CAD traded in narrow on Tuesday  as investors assessed the latest escalation in the U.S.-Canada trade dispute and its potential economic fallout.

• Canada retaliated with tariffs on about $20 billion of U.S. imports, matching Washington’s latest duties while providing aid to affected businesses and workers..

• Canada’s counter-tariffs on U.S. goods will take effect on September 8, with duties of 15%, 25% and 50% imposed on around 700 products, the government said.

• Canada imposed 50% tariffs on steel, aluminum, furniture and clothing, 25% on cheese, appliances and some seafood, and 15% on electronics and tools, a government official said.

•The price of oil, one of Canada's major exports, fell as traders shrugged off the latest U.S. sanctions campaign against Iran
               
•  Immediate resistance is located at 1.3862(50%fib), any close above will push the pair towards 1.3920(SMA 20.).

• Support is seen at 1.3786(Aug 25th low) and break below could take the pair towards 1.3721(38.2%fib).

Recommendation: Good to sell around 1.3950  with stop loss of 1.4050 and target price of 1.3900