FxWirePro: USD/CAD recovers from three week low as trade deal optimism lifts sentiment

• USD/CAD recovered from three week low on Wednesday  as President Donald Trump fueled hopes for new deals with U.S. trading partners ahead of the fast-approaching August 1 deadline.

•  President Donald Trump announced Tuesday that Japan will face a reduced 15% tariff on exports to the U.S. under a new trade deal, following a similar agreement with the Philippines imposing a 19% rate.

• Trump added that EU officials would arrive Wednesday for trade talks, fueling optimism for a deal despite reports that the bloc is preparing countermeasures ahead of the August 1 deadline.

• Markets are increasingly hopeful that the U.S. will reach more trade agreements in time to prevent the August 1 tariff escalation.

• Immediate resistance is located at 1.3626(38.2%fib), any close above will push the pair towards 1.3674(50%fib).

• Support is seen at 1.3571(23.6%fib) and break below could take the pair towards 1.3546(Lower BB).

Recommendation: Good to buy around 1.3600, with stop loss of 1.3530 and target price of 1.3680