To tariff or to not tariff, that’s the query within the USDCAD

President Trump yesterday introduced plans to impose a 25% tariff on Canadian and Mexican imports beginning February 1, although he steered oil imports could be exempt.

This announcement precipitated important volatility in USDCAD. The pair surged from round 1.4400 to a excessive of 1.4594, marking new highs since 2020, earlier than retracing under 1.45158, a key degree established on January 21 throughout earlier tariff-related information. The pair additionally re-entered the “Crimson Field” buying and selling vary, which has outlined motion since December 17. That Crimson Field is from 1.4489 to 1.44664. The excessive swing space of the vary is available in at 1.4448 to 1.4466.

• Key Ranges to Watch:
  • Assist Zone: Excessive swing space throughout the “Crimson Field” at 1.4448–1.4466. Staying above this zone might result in additional upside momentum.
  • Bearish Sign: If the value trades again under 1.4448, consumers might lose momentum/hope, probably resulting in draw back exploration.

Merchants ought to monitor these ranges intently for directional cues as we speak, however information headlines can be a key threat that would result in sharp strikes someway. So perceive the liquidity and hole threat in your buying and selling.

This text was written by Emma Wang at www.ubaidahsan.com.



Source link