FxWirePro: USD/CAD sustains gains as uptrend remains strong

• USD/CAD extended gains above 1.4200  level     as Fed rate hike bets and escalating Canada-US trade tensions weighed on loonie.

• The United States on Tuesday banned imports of Canadian alcoholic beverages, dairy products and motorcycles, marking the latest escalation in the deepening trade dispute between the two countries..

• Canadian Prime Minister Mark Carney took office last year pledging to push back against US President Donald Trump’s trade measures. Alongside retaliating against US tariffs, Carney has also sought to reduce Canada’s economic dependence on the United States.

• The dollar strengthened alongside rising US Treasury yields as expectations of further Federal Reserve rate hikes grew amid concerns that higher oil prices could fuel inflation.

• Oil prices rose by about $1 a barrel on Wednesday, and logged steep monthly ‌gains, on stalled US-Iran peace talks and tightening US fuel markets.

 •  Immediate resistance is located at 1.3238(23.6%fib), any close above will push the pair towards 1.4292(Higher BB.).

• Support is seen at 1.4144(38.2%fib) and break below could take the pair towards 1.4063(50%fib).

Recommendation: Good to buy around 1.4200 with stop loss of 1.4100 and target price of 1.4300