USD/CAD got absolutely 'hammered' on Monday

Trump's trade negotiations provided USD/CAD with its most volatile daily range since the height of the Pandemic. Yet the surprise announcement that Trump is pausing Canada's tariffs for 30 days saw prices reverse sharply lower, to close the day with an elongated bearish hammer.

Does that pave the way for an immediate reversal lower? Not necessarily. Using price action and market position, I explain why.

Matt Simpson, Market Analyst at City Index and Forex.com