Following this news, US Pres. Trump to announce 10% tariff on some Canadian aluminium, the Canadian deputy PM Freeland has said that the US tariffs on Canadian aluminium products are 'unwarranted and unacceptable and states that the nation intends to swiftly impose dollar-for-dollar countermeasures.
Market implications
The Canadian dollar is likely to come under pressure while this story dominates, just at a time when the trade data was starting to reflect that the business conditions for trade were improving.
15-min chart Bulls supported by trendline
-637323537053527766.png)
Upside moves in on critical levels of resistance
-637323537272593359.png)
Fibonaccis bring resistance into perspective
-637323537464646114.png)
There are a series of upside targets to be mindful of, namely the 38.2%, 50% and 61.8% Fibs that all have a confluence with key structure.
However, considering the positioning data in the USD, the CAD, based on these fundamentals could well be where investors seek to offload their exposure to overall short conditions.
This makes for a heavily bullish prospect for funds which will bring the early July lows into focus.
For the near term, at least, the 50% Fib is compelling, 1.3340s, ahead of 1.3370 and the 61.8% target if the late July bottoms give out.
However, it is Nonfarm, Payrolls day today, which likely means geopolitics will have to take a back seat, for now.
More on this here: Nonfarm Payrolls Preview: Hints point to an awful July
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