FxWirePro: USD/CAD gains as investors weigh US tariffs, await Iran sanctions details

• USD/CAD strengthened on Monday as markets digested new U.S. tariffs on Canada and awaited further details on Iran-related sanctions.

• The U.S. imposed 50% tariffs on ​some Canadian goods on Saturday, after the two neighbors failed ⁠to reach a trade deal.

•President Donald Trump threatened to raise U.S. tariffs on Canadian cars, trucks and auto parts to 50% from January 1, 2027, escalating trade tensions after talks broke down last week.

•The escalation threatens to disrupt one of the world's most integrated auto supply chains. U.S. auto ​production is heavily reliant on Canadian-made parts and vehicles, and higher tariffs could raise costs for American automakers and consumers

• Trump wants Canada to come to the table and negotiate in good faith, U.S. Treasury Secretary Scott Bessent told reporters on Monday
               
•  Immediate resistance is located at 1.3888(50%fib), any close above will push the pair towards 1.3945(SMA 20.).

• Support is seen at 1.3731(38.25fib) and break below could take the pair towards 1.3700( Lower BB).

Recommendation: Good to sell around 1.3860  with stop loss of 1.3920 and target price of 1.3800