USD/CAD | US Dollar to Canadian Dollar Trading Analysis

Source: PaxForex Premium Analytics Portal, Technical Insight

Canada: GDP has been growing for 10 months in a row:

• Canada: February, GDP 0.4% m/m vs forecast of 0.5% and previous +0.7%;
• GDP y/y -2.2% vs. forecast -2.3% and previous -2.3%;
• Growth was registered in 14 out of 20 sectors of the economy;
• The index rose for the 10th consecutive month, offsetting the sharp slump in economic activity in March and April 2020;
• However, economic activity still falls short of the 2% pre-February 2020 levels;
• Services sector +0.6%; goods production -0.2%;
• Preliminary estimates promise real GDP growth of about 0.9% in March.

USD/CAD, 30 min

Pivot: 1.2290

Analysis:

Provided that the currency pair is traded above 1.2265, follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 1.2290
• Take Profit 1: 1.2320
• Take Profit 2: 1.2350

Alternative scenario: 

In case of breakdown of the level 1.2265, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 1.2265  
• Take Profit 1: 1.2245
• Take Profit 2: 1.2225

Comment:

RSI shows the possibility of an uptrend during the day.

Key levels:

USD/CAD, D1

Pivot: 1.2282

Analysis:

While the price is below 1.2500, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 1.2282
• Take Profit 1: 1.2200
• Take Profit 2: 1.2030

Alternative scenario:

If the level 1.2500 is broken-out, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 1.2500
• Take Profit 1: 1.2640
• Take Profit 2: 1.2745

Comment:

RSI shows the possibility of the downtrend in the medium term.

Key levels:

We also advise you to pay attention to the following currency pairs for intraday trading:

EUR/USD - sell below 1.2040 with 1.1995 and 1.1980 targets as Take Profit. Alternative scenario - if the level 1.2040 is broken-out, buy with the TP 1.2060 and 1.2080.
GBP/USD - short positions below 1.3855 with 1.3800 and 1.3780 targets as Take Profit. Alternative scenario - if the level of 1.3855 is broken-out, buy with the targets 1.3880 and 1.3805 as Take Profit.
AUD/USD –  sell below 0.7735 with 0.7695 and 0.7680 as Take Profit targets. Alternative scenario - if the level of 0.7735 is broken-out, you should consider buying with the targets 0.7750 and 0.7770 as Take Profit.