As we reported on 3 February, the decision by the US president to impose 25% tariffs on goods imported from Canada sent the USD/CAD rate soaring to a 22-year high.
However, after a round of negotiations between Donald Trump and Justin Trudeau, the tariff implementation was postponed by a month, which was reflected in the USD/CAD exchange rate chart.
Current USD/CAD Chart Analysis:
→ The price has retreated from the upper boundary of the ascending channel identified three days ago and has now dropped below its lower boundary.
→ The price has returned to and remains within the broad 1.4270 – 1.4460 range.
→ The ATR indicator has reversed from its peak and is trending downward.
Given these factors, it is reasonable to say that USD/CAD is stabilising after recent volatility. But what lies ahead?
The exchange rate may fluctuate within the 1.4270 – 1.4460 range, reacting sensitively to any news on Trump’s tariff policies and his startling suggestion of making Canada the 51st US state.
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