Currently, USD/CAD is trading at 1.3552, up 0.40% on the day, having posted a daily high at 1.3556 and low at 1.3497.
USD/CAD has rallied out of the tight ranges of the US market. USD/CAD just jumped 40 pips on the back of news hitting the wires that Trump plans to impose 20% tariff on Canadian soft lumber imports. Trumps relation with Prime Minister Justin Trudeau who is sticking to his guns in respect to Trump's pressures of late over such industry as
energy, lumber, and dairy after Trump recently said that Canadian dairy policies were a “disgrace” to U.S. farm workers.
Near-term support comes in at 1.3420 while the market is better bid with the medium term MA’s bullishly aligned as spot takes on the mid point of the 1.35 handle. 1.3580 is on the cards now we are at 2017 fresh highs, so a test of 1.3580 opens 1.3600. 1.3409 holds the downside target. Analysts at Brown Brothers Harriman offered their analyses, “The technical indicators point to additional US dollar strength, with CAD1.36 being the next obvious target. In addition to corresponding to the highs from Q4 16, it is also the 50% retracement objective of the US dollar slide from the January 16 high near CAD1.4700. The greenback's sharp advance is forcing the Bollinger Band to widen. The upper band is found near CAD1.3500.”
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