• USD/CAD dipped on Monday as weaker greenback and higher commodity prices boosted the Canadian dollar.
• The dollar weakened across the board after U.S. President Donald Trump said on Friday he planned to increase tariffs on imported steel and aluminum to 50% from 25% starting Wednesday.
• Investors will focus this week on the Bank of Canada’s rate decision on Wednesday and the Canadian jobs report due Friday.
• On the data front, Canadian manufacturing activity shrank for a fourth straight month in May, with trade uncertainty prompting the fastest job cuts since the early pandemic.
• At GMT 16:35, the dollar was trading down 0.18 percent at 1.3705 against Canadian dollar.
• Immediate resistance is located at 1.3762(38.2%fib), any close above will push the pair towards 1.3826(50%fib).
• Support is seen at 1.3678 (23.6%fib) and break below could take the pair towards 1.3635(Lower BB).
Recommendation: Good to sell around 1.3750, with stop loss of 1.3850 and target price of 1.3650
