Source: PaxForex Premium Analytics Portal, Technical Insight

According to Statistics Canada, in the second quarter, the country's economy suffered the sharpest recession in the history of observation due to the COVID-19 pandemic. According to the agency, the real gross domestic product fell 38.7 percent year on year in three months. Economists at Refinitiv expected an even greater 39.6 percent year-over-year decline. 

USD/CAD, 30 min

Pivot: 1.3086

Analysis:

Provided that the currency pair is traded below 1.3125, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 1.3086
• Take Profit 1: 1.3045
• Take Profit 2: 1.3015

Alternative scenario: 

In case of breakout of the level 1.3125, follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 1.3125
• Take Profit 1: 1.3160
• Take Profit 2: 1.3190

Comment:

RSI shows the possibility of a descending momentum during the day.

Key levels:

USD/CAD, D1

Pivot: 1.3175

Analysis:

While the price is below 1.3320 follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 1.3090
• Take Profit 1: 1.2950
• Take Profit 2: 1.2790

Alternative scenario:

If the level 1.3320 is broken-out, follow the recommendations below.

• Time frame: D1
• Recommendation: long position
• Entry point: 1.3320
• Take Profit 1: 1.3500
• Take Profit 2: 1.3720

Comment:

RSI indicates that the downtrend continues 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 1.1880 with 1.1930 and 1.1950 targets as Take Profit. Alternative scenario - if the level 1.1880 is broken-down, sell with the TP 1.1865 and 1.1835.
GBP/USD - long positions above 1.3315 with 1.3370 and 1.3415 targets as Take Profit. Alternative scenario - if the level of 1.3315 is broken-down, sell with the targets 1.3260 and 1.3220 as Take Profit.
NZD/USD – buy above 0.6713 with 0.6767 and 0.6782 as Take Profit targets. Alternative scenario - if the level of 0.6713 is broken-down, you should consider selling with the targets 0.6689 and 0.6675 as Take Profit.