USD/CAD Tumbles on Bearish Indicators and Canada's Retaliatory Tariffs

The USD/CAD pair is trending lower due to bearish indicators and the Canadian Dollar's support from a weaker US Dollar. The Canadian Dollar has been boosted by Canada's retaliatory tariffs on US goods, with duties ranging from 15% to 50%. This move follows the United States' decision to impose 50% tariffs on similar Canadian imports after trade negotiations collapsed.

The technical setup suggests that USD/CAD risks are tilted lower, with the Relative Strength Index (RSI) near 37 and a negative Moving Average Convergence Divergence (MACD). The Average Directional Index (ADX) at 35 points to a strong underlying trend, reinforcing the bearish outlook.

Initial support is seen at the 61.8% Fibonacci retracement near 1.3803, followed by the 78.6% retracement at 1.3684 and the 100.0% retracement around 1.3531.