FxWirePro: USD/CAD rebounds strongly, critical resistance lies ahead

• USD/CAD rose higher on Monday  as greenback rose after the United States and China reached a deal to reduce tariffs, boosting investor optimism and easing fears of an all-out trade war disrupting global markets.

• The U.S. and China announced Monday they will cut tariffs for 90 days—U.S. duties on Chinese goods will drop from 145% to 30%, while China will reduce tariffs on U.S. imports from 125% to 10%.

• The U.S.-China deal follows a recent U.S.-UK trade pact, easing concerns that President Trump's April 2 tariffs would disrupt global trade and trigger a recession.

.• The tariff dispute had stalled nearly $600 billion in two-way trade, disrupting supply chains, fueling stagflation fears, and leading to layoffs..

• Immediate resistance is located at 1.4000 (Psychological level), any close above will push the pair towards 1.4076(50%fib).

• Support is seen at 1.3936 (38.2%fib) and break below could take the pair towards 1.3762(23.6%fib).

Recommendation: Good to buy around 1.3980, with stop loss of 1.3900 and target price of 1.4080