The USDCAD moved lower (higher CAD) despite tariffs on Canada steel. Technicals in play.

President Trump officially announced a 25% tariff on all steel and aluminum imports into the U.S., despite granting a 30-day reprieve for Canadian exports last week. Canada, a major exporter of these metals to the U.S., is directly impacted. Trump also talked of tariffs on cars, pharmaceuticals and chips

Following the announcement, USDCAD initially tested resistance near 1.4348 overnight but is pulling back in early North American trading. For further upside movement, the pair must break above 1.4348 and then 1.4368. Failing that, sellers remain in control.

On the downside, key support lies between 1.4290 and 1.4304—a break below this could lead to further losses, with the next support zone at 1.4260-1.4269 potentially opening the door for more bearish momentum.

This article was written by Greg Michalowski at www.forexlive.com.