• USD/CAD slid sharply lower on Monday as Trump's tariff announcement unsettled investors.
•Trump on Saturday issued 25% trade duties on Canada and Mexico, along with a 10% levy on China. Canada immediately announced retaliatory tariffs, sparking fears a trade war between two close allies.
• Trump said he would speak on Monday with the Canadian and Mexican leaders, who have announced retaliatory measures, but downplayed expectations they would change his mind.
• The Canadian dollar, which recorded its longest monthly losing streak since 2016 to the end of January, slid further to its lowest in over 20 years at almost 1.48 to the U.S. currency .
• Immediate resistance is located at 1.4640(38.2%fib), any close above will push the pair towards 1.4792 (23.6%fib).
• Support is seen at 1.4503(50%fib) and break below could take the pair towards 1.4365(61.8%fib).
Recommendation: Good to buy around 1.4550, with stop loss of 1.4350and target price of 1.4750
