• USD/CAD strengthened on Friday as investors evaluated the economic impact of the latest U.S. tariff measures.
• The United States imposed new 10% and 12.5% tariffs on imports from 60 trading partners, including the European Union and China.
• Earlier this week, the United States announced 50% tariffs on a broad range of Canadian imports, effective August 19. Canada exports about 70% of its goods to the U.S., including crude oil, leaving its economy highly exposed to the new trade measures.
• U.S. crude futures settled 3.1% lower at $89.31 a barrel after reports that China had launched an initiative to revive stalled peace talks between the United States and Iran..
•On the data front, Canadian wholesale trade rose 2.7% in June from May, driven mainly by stronger sales in the machinery, equipment and supplies subsector, while manufacturing sales edged down 0.1%.
• Immediate resistance is located at 1.4113(38.2%fib), any close above will push the pair towards 1.4137(SMA 20).
• Support is seen at 1.4056(Daily low) and break below could take the pair towards 1.4000(Psychological level).
Recommendation: Good to buy around 1.4080 with stop loss of 1.4000 and target price of 1.4150
