• USD/CAD slipped sharply lower on Thursday as the Canadian dollar strengthened, boosted by President Trump’s temporary pause on tariffs for several countries.
• On Wednesday, Trump suspended most hefty tariffs for 90 days, easing global market fears and helping the Canadian dollar rally
• The tariff pause excludes Canada and Mexico, as their goods remain subject to 25% fentanyl-related tariffs unless they meet USMCA rules of origin.
• On the data front, U.S. consumer prices fell 0.1% in March, matching expectations, but inflation concerns persist amid Trump’s tariff hike on Chinese goods, which has intensified the U.S.-China trade war.
• Immediate resistance is located at 1.4047 (50%fib), any close above will push the pair towards 1.4141(61.8%fib).
• Support is seen at 1.3972 (38.2%fib) and break below could take the pair towards 1.3863(23.8%fib).
Recommendation: Good to sell around 1.4000, with stop loss of 1.4150 and target price of 1.3900
