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:

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:

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.