Adding to USD weakness is a U.S. federal court decision blocking the Trump administration’s “Liberation Day” tariffs. The ruling, which invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA), directly impacts tariffs on major U.S. trade partners like Canada. This is CAD-positive, as it reduces trade uncertainty and supports the Canadian economy - at least for now. The administration is saying the ruling did nothing and there are ways around the ruling as well. .
Focus now shifts to the downside, with immediate targets at the 100-hour moving average near 1.37772. Below that, traders will be watching the swing area between 1.37498 and 1.37724—a zone that has seen multiple inflection points and could attract buyers on first test.
Resistance: 1.38107 (38.2% of the May range), 1.3835 (200-hour MA), 1.38499 (50% midpoint), 1.38607 (high today), 1.3889 ((61.8%)
Support: 1.37772 (100-hour MA), 1.37498–1.37724 (swing area),
Summary: The confluence of weakening U.S. economic data and legal setbacks for Trump's tariff strategy has tilted momentum in favor of the Canadian dollar. A break below 1.3772 would increase downside pressure, while a move back above 1.3835 is needed to reestablish bullish control.
This article was written by Greg Michalowski at www.forexlive.com. Read More Details
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