Source: PaxForex Premium Analytics Portal, Technical Insight
In the accompanying statement at the end of the monetary policy meeting the Bank of Canada said:
- The Central Bank will maintain the rate at current levels and continue QE until inflation reaches the target level on a sustainable basis;
- The Central Bank will maintain a transparent communication policy and continue to implement the QE program at the current pace (at least C$4 billion per week);
- The C$ remains relatively stable against the USD, but has strengthened against most other currencies ;
- The economy is showing better-than-expected resilience in the second wave of the pandemic;
- Canada's Q1 GDP is expected to show growth (versus January's forecast of contraction);
- The spread of more contagious strains of COVID-19 poses downside risks to activity;
- Inflation in Canada may rise temporarily near the upper end of the range over the next few months;
- After that, inflation will fall as the effects of the low base fade.
USD/CAD, 30 min
Pivot: 1.2575
Analysis:
Provided that the currency pair is traded above 1.2550, follow the recommendations below:
- Time frame: 30 min
- Recommendation: long position
- Entry point: 1.2575
- Take Profit 1: 1.2610
- Take Profit 2: 1.2635
Alternative scenario:
In case of breakdown of the level 1.2550, follow the recommendations below:
- Time frame: 30 min
- Recommendation: short position
- Entry point: 1.2550
- Take Profit 1: 1.2535
- Take Profit 2: 1.2520
Comment:
RSI shows the possibility of an uptrend during the day.
Key levels:
Resistance | Support |
1.2650 | 1.2550 |
1.2635 | 1.2535 |
1.2610 | 1.2520 |
USD/CAD, D1
Pivot: 1.2530
Analysis:
While the price is below 1.2745, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 1.2530
- Take Profit 1: 1.2460
- Take Profit 2: 1.2360
Alternative scenario:
If the level 1.2745 is broken-out, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 1.2745
- Take Profit 1: 1.2855
- Take Profit 2: 1.2980
Comment:
RSI shows the possibility of the downtrend in the medium term.
Key levels:
Resistance | Support |
1.2980 | 1.2460 |
1.2855 | 1.2360 |
1.2745 | 1.2300 |
We also advise you to pay attention to the following currency pairs for intraday trading:
EUR/USD - sell below 1.1920 with 1.1870 and 1.1860 targets as Take Profit. Alternative scenario - if the level 1.1920 is broken-out, buy with the TP 1.1940 and 1.1960.
GBP/USD - short positions below 1.3755 with 1.3705 and 1.3685 targets as Take Profit. Alternative scenario - if the level of 1.3755 is broken-out, buy with the targets 1.3780 and 1.3800 as Take Profit.
AUD/USD – sell below 0.7635 with 0.7570 and 0.7550 as Take Profit targets. Alternative scenario - if the level of 0.7635 is broken-out, you should consider buying with the targets 0.7660 and 0.7680 as Take Profit.