• USD/CAD traded in tight range on Monday as investors remained risk-averse ahead of potential U.S. tariffs.
• Canada and Mexico are ramping up talks to avert a 25% tariff on their exports to the U.S., with a March 4 deadline looming.
•The two North American countries have reinforced border security, gaining a one-month reprieve from tariffs that could potentially disrupt the region's closely integrated economy.
• Looking ahead, markets will focus on the release of the Personal Consumption Expenditures (PCE) index on Friday, the Federal Reserve's preferred inflation gauge.
• Immediate resistance is located at 1.4251(Feb 19th high), any close above will push the pair towards 1.4333(38.2%fib).
• Support is seen at 1.4192(50%fib) and break below could take the pair towards 1.4108(Lower BB).
Recommendation: Good to buy around 1.4200, with stop loss of 1.4120 and target price of 1.4270
