USDCAD -- Recent volatility in the USD/CAD exchange rate highlights growing concerns over potential US tariffs on Canadian exports, according to a new UBS report. While the threatened 25% blanket tariff hasn't materialized, UBS analyst Patrick Ernst emphasized that uncertainty remains elevated as both nations navigate this complex trade situation
- **Bearish Setup:** If **1.4350 breaks**, expect a drop toward **1.4280-1.4260** (Descending Triangle breakdown). - **Bullish Setup:** If **1.4350 holds**, a bounce to **1.4395-1.4420** is possible (Double Bottom reversal). - **Confirmation:** Watch for strong **breakout candles** and volume before entry. 🚀 must use risk management.
USDCAD **CAD gains 0.5%**, pushing **USD/CAD below 1.4400** as the Greenback eases. ✔ **Bank of Canada (BoC) cuts rates by 25 bps**, bringing the key rate to **2.75%** to support the economy. ✔ **Trade war tensions rise**, with the US imposing tariffs on steel, aluminum, and potentially copper. ✔ **US CPI inflation cooled in February**, easing fears of prolonged price pressures. ✔ **Mark Carney set to replace Justin Trudeau as Canadian PM**, promising tough trade negotiations with the US.
📈 **USD/CAD Outlook:** 🔹 **Resistance:** **1.4440 – 1.4480** (key supply zone). 🔹 **Support:** **1.4300** (key demand zone). 🔹 **CAD strength is uncertain**, as **whipsaw conditions** persist amid trade war risks and interest rate moves.
🎯 **Key Level to Watch:** **1.4300 – Break below could trigger further CAD strength! 🚀**