FxWirePro: USD/CAD loses momentum, but outlook is bullish

• USD/CAD edged lower slightly lower on Monday as investors weighed the implications of the latest U.S. tariff threats.

• On Saturday, U.S. President Donald Trump announced a 30% tariff on most imports from the European Union and Mexico, set to take effect on August 1, despite ongoing trade negotiations with both parties.

•   Trump’s latest move builds on last week’s wave of tariffs, which hit close U.S. allies such as Canada, Japan, and South Korea, and imposed a steep 50% duty on copper..

  •On the data front,   Canadian wholesale trade rose 0.1% in May from April, driven by higher sales in the personal and household goods subsector, Statistics Canada reported on Monday.

• Meanwhile, Markets   turned their focus to Tuesday’s consumer price data, which is expected to show a pickup in U.S. inflation for June, as businesses began raising prices in anticipation of Trump’s sweeping tariffs.

•At GMT 15:42, the  dollar was trading down0.14% at 1.3674 against Canadian  dollar   .

• Immediate resistance is located at 1.3658(SMA20), any close above will push the pair towards 1.3726(50%fib).

• Support is seen at 1.3671(50%fib) and break below could take the pair towards 1.3555(38.2%fib).

Recommendation: Good to buy around 1.3670, with stop loss of 1.3600 and target price of 1.3750