• USD/CAD spiked on Thursday as President Trump floated the threat of imposing tariffs on Canadian and Mexican goods, fueling concerns over trade tensions.
• Trump indicated Thursday that he would likely decide soon on imposing a 25% tariff on Mexican and Canadian oil imports, set to take effect February 1.
• Trump has repeatedly threatened Mexico and Canada, two key trading partners, with tariffs unless they halt fentanyl shipments and reduce migrant flows across U.S. borders.
• At GMT 21:31, the pair was last up 0.58% at 1.4503, after hitting daily high1.4601.
• Immediate resistance is located at 1.4483(Jan 21st high), any close above will push the pair towards 1.4601(23.6%fib).
• Support is seen at 1.4421(38.2%fib) and break below could take the pair towards 1.4371(Jan 28th low).
Recommendation: Good to buy around 1.4480, with stop loss of 1.4410 and target price of 1.4580
