Tariff retaliation - short-term downtrend

🔔🔔🔔 USD/CAD news:

➡️ Crude oil prices dropped to new multi-year lows amid growing fears that sweeping tariffs imposed by U.S. President Donald Trump and the escalating trade war between the U.S. and China could push the global economy into recession, thereby weakening fuel demand. Additionally, the risk of rising trade tensions between the U.S. and Canada, combined with political uncertainty ahead of Canada’s snap election on April 28, weighed on the commodity-linked Loonie and provided upward momentum for the USD/CAD pair.

➡️ Tariffs on U.S. imports into China are set to increase from 34% to 84% starting April 10, according to a translated statement from the Office of the Tariff Commission of the State Council. This move is in retaliation for the latest U.S. tariff hike on Chinese products, which exceeded 100% and took effect at midnight.

Personal opinion:
➡️ The USD is being affected by China's tariff retaliation, so in the short term it will cause USD/CAD to decrease

➡️ Analyze based on important resistance - support and Fibonacci levels combined with trend lines to come up with a suitable strategy

Plan:
🔆Price Zone Setup:

👉Sell USD/CAD 1.4235 – 1.4245
❌SL: 1.4285 | ✅TP: 1.4170 – 1.4110

FM wishes you a successful trading day 💰💰💰