• USD/CAD strengthen on Tuesday as the threat of additional U.S. tariffs on Canadian goods led to investors reducing bets on Bank of Canada interest rate hikes this year..
• U.S. President Donald Trump imposed 50% tariffs on a wide range of Canadian imports, citing Canada's treatment of U.S. cars, alcohol, and dairy products. The new tariffs take effect on August 19.
• The Bank of Canada is widely expected to keep its benchmark interest rate unchanged at 2.25% on Wednesday, as easing inflation and stronger economic activity reduce the need for further policy changes.
• Oil prices jumped more than 3% on Monday as renewed U.S.-Iran strikes raised fears of supply disruptions through the Strait of Hormuz..
• Immediate resistance is located at 1.4115(38.2%fib), any close above will push the pair towards 1.448(SMA 20).
• Support is seen at 1.4060(July 20th low) and break below could take the pair towards 1.4006(50%fib).
Recommendation: Good to buy around 1.4100 with stop loss of 1.4000 and target price of 1.4200
