Forex
USD/CAD Plummets on Canadian Tariffs and Weaker Greenback
The USD/CAD pair continues to struggle, weighed down by bearish indicators and a weaker US Dollar. The Canadian Dollar has found support from its status as a safe-haven currency amidst the ongoing trade tensions between the US and Canada.
On Tuesday, Canada announced retaliatory tariffs on C$27.6 billion worth of US imports, ranging from 15% to 50%. This move follows the US decision to impose similar tariffs on Canadian goods after trade talks collapsed.
The technical setup for USD/CAD suggests that the pair is at risk of further decline, with the Relative Strength Index (RSI) near 37 and negative Moving Average Convergence Divergence (MACD). The 200-day Simple Moving Average (SMA) at 1.3843 provides a key resistance level.