• USD/CAD retreated slightly on Wednesday as oil prices rose, but the move was limited as investors contended with increased trade uncertainty.
• Oil, one of Canada's key exports, climbed to a near six-week high on mounting concerns that escalating U.S.-Iran hostilities could disrupt Middle East supply routes.
• Prime Minister Mark Carney said late Tuesday he and Donald Trump agreed to intensify trade negotiations after the U.S. president unveiled plans for 50% tariffs on a wide range of Canadian imports.
• Trump escalated trade tensions with Canada by imposing 50% tariffs on a broad range of goods, effective August 19, citing disputes over autos, dairy and provincial alcohol policies.
•On the data front, Canadian retail sales data for May, due Thursday, is expected to show a 1.0% rise, adding to signs of a second-quarter economic rebound.
• Immediate resistance is located at 1.4124(38.2%fib), any close above will push the pair towards 1.4156(SMA 20).
• Support is seen at 1.4022(50%fib) and break below could take the pair towards 1.3982(SMA 20).
Recommendation: Good to sell around 1.4100 with stop loss of 1.4150 and target price of 1.4050
