President Donald Trump has unveiled new tariffs:
→ A 35% tariff on Canadian imports, set to take effect August 1 unless negotiations alter the plan.
→ Tariffs of 15–20% for many other countries.
→ No specific rates disclosed yet for the European Union.
These announcements have added fresh uncertainty around trade policy. Markets responded accordingly:
→ The US dollar strengthened against most major currencies, including the Canadian dollar.
→ Equity markets slipped modestly.
USD/CAD Technical Analysis
Following news of the 35% tariff, USD/CAD surged to levels last seen in late June before stabilizing. The chart shows a triangular formation defined by:
→ A descending resistance line (R).
→ Major support near 1.3570 (S).
Despite the spike, bulls failed to break resistance, signaling strong selling pressure. Recent price action has also formed a local support (blue line), suggesting the pair is consolidating within this range.
Future moves will likely hinge on updates from US–Canada trade negotiations.
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