• USD/CAD declined on Monday as investors braced for the U.S. President's proposed tariffs to take effect and assessed economic data from both Canada and the U.S.
• U.S. tariffs on Canada, Mexico, and China will take effect on Tuesday, with President Trump set to decide whether to maintain the proposed 25% rate, keeping investors on edge.
• Canadian manufacturing activity shrank in February for the first time in six months, with trade uncertainty driving the weakest business outlook since COVID-19.
• Canada's Manufacturing PMI dropped to 47.8 in February, slipping below 50 for the first time since August.
• Immediate resistance is located at 1.4474(50%fib), any close above will push the pair towards 1.4617(38.2%fib).
• Support is seen at 1.4341 (38.2%fib) and break below could take the pair towards 1.4295(SMA 11).
Recommendation: Good to buy around 1.4400, with stop loss of 1.4320 and target price of 1.4480
