Source: PaxForex Premium Analytics Portal, Technical Insight

The Bank of Canada announced its verdict on monetary policy. As widely expected, the Central Bank did not change the level of the key interest rate, leaving it at 0.25%.

The text of the accompanying central bank statement noted:

• The Bank continues to pursue an aggressive communication policy backed and augmented by a QE program that will continue to be implemented at the current rate of C$4 billion per week;

• The global and Canadian economic recoveries are mostly in line with the Central Bank's October expectations;

• Economic momentum in Q4 seems stronger than projected in October;

• Rates will not rise until at least 2023.

 USD/CAD, 30 min

Pivot: 1.2730

Analysis:

Provided that the currency pair is traded above 1.2730, follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 1.2730
• Take Profit 1: 1.2750
• Take Profit 2: 1.2770

Alternative scenario: 

In case of breakdown of the level 1.2730, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 1.2815
• Take Profit 1: 1.2675
• Take Profit 2: 1.2650

Comment:

RSI shows the possibility of an uptrend during the day.

Key levels:

USD/CAD, D1

Pivot: 1.2749

Analysis:

While the price is below 1.3030, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 1.2749
• Take Profit 1: 1.2650
• Take Profit 2: 1.2420

Alternative scenario:

If the level 1.3030 is broken-out, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 1.3030
• Take Profit 1: 1.3235
• Take Profit 2: 1.3420

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 - buy above 1.2145 with 1.2200 and 1.2220 targets as Take Profit. Alternative scenario - if the level 1.2145 is broken-down, sell with the TP 1.2135 and 1.2120.
GBP/USD - long positions above 1.3395 with 1.3480 and 1.3510 targets as Take Profit. Alternative scenario - if the level of 1.3395 is broken-down, sell with the targets 1.3345 and 1.3290 as Take Profit.
AUD/USD – buy above 0.7530 with 0.7580 and 0.7600 as Take Profit targets. Alternative scenario - if the level of 0.7530 is broken-down, you should consider selling with the targets 0.7505 and 0.7480 as Take Profit.