FXOpen
As we reported on 3 February, Trump’s tariffs pushed USD/CAD to a 22-year high.
However, a one-month tariff delay led to a sharp drop, sending USD/CAD to its 2025 low near 1.41550. As the end of the delay approaches, the pair has been climbing again since mid-February (as shown by the arrow).
Yesterday, President Trump confirmed that his proposed 25% tariffs on Mexican and Canadian goods will take effect on 4 March. This dashed hopes for another delay and triggered a breakout above the 1.43600 resistance level.
Technical Analysis of USD/CAD
Above current levels, key resistance lies at 1.44600, which has held firm since mid-December. However, drastic measures from Trump’s administration could drive further price movement within the blue-marked channel.
Expect volatility spikes ahead of Canada’s GDP release, scheduled for today at 16:30 GMT+3.
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