• USD/CAD declined on Wednesday as China and the European Union imposed new trade barriers on U.S. goods, raising concerns about the escalating trade war.
• Trump's 104% tariffs on Chinese goods took effect on Wednesday, leading to a swift response from Beijing with 84% duties on U.S. imports.
• The escalating trade war between the world's two largest economies shook even safe-haven assets like the U.S. dollar and Treasuries, pushing bond yields higher.
• On the economic front, minutes from the Federal Reserve's March policy meeting are expected later today, with the U.S. consumer price inflation report due on Thursday.
• Immediate resistance is located at 1.4272 (50%fib), any close above will push the pair towards 1.4420(61.8%fib).
• Support is seen at 1.4119 (38.2%fib) and break below could take the pair towards 1.4000(Psychological level).
Recommendation: Good to sell around 1.4200, with stop loss of 1.4350 and target price of 1.4100
