Source: PaxForex Premium Analytics Portal, Technical Insight

Fitch downgraded Canada's sovereign rating to AA+ from the previous AAA value. The outlook for the rating is stable. Canada was one of the few countries with top AAA rating. However, in Moody's and S&P ratings it continues to hold these positions. According to Fitch's comments, the revision was due to the worsening situation in the country's state budget under the influence of the pandemic. In particular, the agency pointed to an increase in the deficit indicators of the debt to GDP ratio.

USD/CAD, 30 min

Pivot: 1.3608

Analysis:

Provided that the currency pair is traded above 1.3590, follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 1.3608
• Take Profit 1: 1.3615
• Take Profit 2: 1.3640

Alternative scenario: 

In case of breakdown of the level 1.3590, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 1.3590
• Take Profit 1: 1.3570
• Take Profit 2: 1.3545

Comment:

RSI shows the possibility of an ascending momentum during the day.

Key levels:

USD/CAD, D1

Pivot: 1.3588

Analysis:

While the price is below 1.3770, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 1.3588
• Take Profit 1: 1.3490
• Take Profit 2: 1.3300

Alternative scenario:

If the level 1.3770 is broken-out, follow the recommendations below.

• Time frame: D1
• Recommendation: long position
• Entry point: 1.3770
• Take Profit 1: 1.4015
• Take Profit 2: 1.4110

Comment:

RSI indicates that the downtrend continues in the medium term.

Key levels:

We also advise you to pay attention to the following currency pairs for intra-day trading:

AUD/USD – sell below 0.6930 with 0.6900 and 0.6880 as Take Profit targets. Alternative scenario - if the level of 0.6930 is broken-out, you should consider buying with the targets 0.6945 and 0.68960 as Take Profit.
GBP/USD - long positions above 1.2455 with 1.2510 and 1.2545 targets as Take Profit. Alternative scenario - if the level of 1.2445 is broken-down, sell with the targets 1.2415 and 1.2385 as Take Profit.
EUR/USD - buy above 1.1240 with 1.1275 and 1.1290 targets as Take Profit. Alternative scenario - if the level 1.1240 is broken-down, sell with the TP 1.1215 and 1.1200.