USDCAD has increased following the announcement of a 25% tariff on Canadian imports by Trump, set to take effect in March. Key technical levels for the pair include the 50% midpoint of February’s trading range, located between 1.4448 and 1.4471.

After a decline that caused the price to drop to 1.4150, USDCAD managed to recover, returning to the “Red Box,” a consolidation zone from earlier in the year. The recent rise has seen the pair surpass the 100-bar moving average on the 4-hour chart, indicating a shift in market sentiment.

Current support levels to monitor include 1.4395 and 1.4366, while resistance levels are placed between 1.4448 and 1.4471. A break above 1.4471 would suggest further upward movement for USDCAD.

With the 25% tariff announcement weighing on sentiment, the latest movements in USDCAD have drawn attention to both technical and fundamental shifts. The re-entry into the earlier consolidation zone suggests a reassessment of previous positioning, particularly as traders evaluate the broader implications of trade policy adjustments. Recovering from 1.4150 and climbing past the 100-bar moving average on the 4-hour chart hints at renewed confidence among buyers. This is not without hesitation, but the recent bounce highlights a readiness to challenge previous resistance levels.

From here, monitoring reactions around 1.4395 and 1.4366 will be necessary, as those points will test whether recent gains can hold or whether sellers start to exert new pressure. A firm move below those marks would shift attention back towards previous lows, especially given February’s price range. That said, a push beyond the 1.4471 resistance level would confirm further strength, making room for additional upside. The progression through this structure will define near-term expectations, given the backdrop of fresh economic developments.

Beyond technicals, market participants will need to account for how policy adjustments interact with broader demand dynamics. With volatility increasing, sudden shifts in positioning are likely to play a role in the coming sessions. While price action remains contained within familiar levels for now, any breakout would warrant close inspection. For those managing risk, the previously defined support and resistance figures provide areas of interest, particularly as sentiment develops ahead of March.