Source: PaxForex Premium Analytics Portal, Technical Insight
Head of Bank of Canada McLem: Policy has an impact on the financial system:
A strong Bank of Canada response to the pandemic was necessary, but now the economy and the financial system will be more exposed to different shocks;
It is clear that after the pandemic the level of public debt will increase;
Companies and pension funds will have to adjust to low rates;
The Bank of Canada will continue to assess the risks that credit losses may become high enough for banks to have to tighten lending terms;
A full recovery will take time, and there are many risks associated with it;
Key commodity sectors face challenges; the longer the recovery, the higher the risk that cash flow problems may turn into solvency problems.
USD/CAD, 30 min
Pivot: 1.3185
Analysis:
Provided that the currency pair is traded below 1.3220, follow the recommendations below:
- Time frame: 30 min
- Recommendation: short position
- Entry point: 1.3185
- Take Profit 1: 1.3140
- Take Profit 2: 1.3120
Alternative scenario:
In case of breakout of the level 1.3220, follow the recommendations below:
- Time frame: 30 min
- Recommendation: long position
- Entry point: 1.3220
- Take Profit 1: 1.3250
- Take Profit 2: 1.3275
Comment:
RSI shows the possibility of a downtrend during the day.
Key levels
| Resistance | Support |
| 1.3275 | 1.3140 |
| 1.3250 | 1.3120 |
| 1.3220 | 1.3100 |
USD/CAD, D1
Pivot: 1.3230
Analysis:
While the price is above 1.3120, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 1.3230
- Take Profit 1: 1.3500
- Take Profit 2: 1.3720
Alternative scenario:
If the level 1.3120 is broken-down, follow the recommendations below.
- Time frame: D1
- Recommendation: short position
- Entry point: 1.3120
- Take Profit 1: 1.2950
- Take Profit 2: 1.2790
Comment:
RSI shows the possibility of the uptrend in the medium term.
Key levels:
| Resistance | Support |
| 1.3850 | 1.3120 |
| 1.3720 | 1.2990 |
| 1.3500 | 1.2790 |
We also advise you to pay attention to the following currency pairs for intraday trading:
EUR/USD - buy above 1.1755 with 1.1805 and 1.1820 targets as Take Profit. Alternative scenario - if the level 1.1755 is broken-down, sell with the TP 1.1735 and 1.1720.
GBP/USD - long positions above 1.2925 with 1.2990 and 1.3005 targets as Take Profit. Alternative scenario - if the level of 1.2925 is broken-down, sell with the targets 1.2905 and 1.2890 as Take Profit.
AUD/USD – buy above 0.7155 with 0.7210 and 0.7235 as Take Profit targets. Alternative scenario - if the level of 0.7155 is broken-down, you should consider selling with the targets 0.7140 and 0.7120 as Take Profit.
