USD/CAD Pulls Back but Finds Support at 200-Hour MA on Tariff Fears

USD/CAD has corrected lower after a sharp rally earlier in the week but found willing buyers near the 200-hour moving average, a key short-term technical support level. The pair's initial surge was driven by renewed trade tensions following the U.S. announcement of 50% tariffs on selected Canadian goods, which gave the U.S. dollar a significant boost against the Canadian dollar. The tariff headlines have injected fresh uncertainty into the trade relationship between the two nations, weighing on CAD sentiment. From a technical perspective, the 200-hour moving average is acting as a critical pivot point — holding above this level keeps the short-term bullish bias intact, while a sustained break below could signal deeper corrective weakness. Traders should watch for further tariff-related developments and any retaliatory measures from Canada, which could amplify volatility in USD/CAD. Near-term resistance lies at the earlier weekly highs, while the 200-hour MA serves as immediate support for dip buyers looking to re-enter long positions.