Source: PaxForex Premium Analytics Portal, Technical Insight
USD/CAD dropped from the highs of the morning American session at 1.2653, shedding a figure and tested the level of 1.2500. At the moment of writing, the pair was trading around 1.2519, having lost 0.7% intraday and remaining under strong bearish pressure. The price collapse was triggered by the hawkish monetary policy verdict of the Bank of Canada. The central bank decided to change the size of the QE program. Volumes of weekly purchases of government bonds were reduced from the current C$4 billion to C$3 billion.
USD/CAD, 30 min
Pivot: 1.2500
Analysis:
Provided that the currency pair is traded below 1.2520, follow the recommendations below:
- Time frame: 30 min
- Recommendation: short position
- Entry point: 1.2500
- Take Profit 1: 1.2480
- Take Profit 2: 1.2455
Alternative scenario:
In case of breakout of the level 1.2520, follow the recommendations below:
- Time frame: 30 min
- Recommendation: long position
- Entry point: 1.2520
- Take Profit 1: 1.2545
- Take Profit 2: 1.2570
Comment:
RSI shows the possibility of a downtrend during the day.
Key levels:
| Resistance | Support |
| 1.2570 | 1.2480 |
| 1.2545 | 1.2455 |
| 1.2520 | 1.2430 |
USD/CAD, D1
Pivot: 1.2600
Analysis:
While the price is below 1.2745, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 1.2600
- Take Profit 1: 1.2360
- Take Profit 2: 1.2220
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 | 1.2360 |
| 1.2855 | 1.2220 |
| 1.2745 | 1.2100 |
We also advise you to pay attention to the following currency pairs for intraday trading:
EUR/USD - buy above 1.2020 with 1.2060 and 1.2080 targets as Take Profit. Alternative scenario - if the level 1.2020 is broken-down, sell with the TP 1.2000 and 1.1985.
GBP/USD - long positions above 1.3920 with 1.3990 and 1.4010 targets as Take Profit. Alternative scenario - if the level of 1.3920 is broken-down, sell with the targets 1.3900 and 1.3885 as Take Profit.
AUD/USD – buy above 0.7730 with 0.7765 and 0.7785 as Take Profit targets. Alternative scenario - if the level of 0.7730 is broken-down, you should consider selling with the targets 0.7700 and 0.7680 as Take Profit.
