FxWirePro: USD/CAD bulls disregard hanging man, major trend develops rising channel – Trade boundary strikes and long hedge

Chart and Candlestick Patterns:

• USDCAD forms hanging man at 1.3484 levels. Bulls disregard this bearish pattern and drags rallies above DMAs, more rallies possible on intensified bullish momentum, both technical indicators (momentum and trend) in tandem with the price rallies. The minor trend has constantly been taking support at 7DMAs and at the uptrend line (refer daily chart). 
• While the major trend has been spiking through rising channel pattern which is again bullish in nature, shooting star pops-up at channel resistance and hammer pattern at channel supports. For now, rallies spike above 7EMAs on the strong channel support, the prevailing strength in the uptrend is in conformity to the both momentum oscillators (RSI & stochastic curves) and trend indicators (EMA & MACD’s bullish crossover). 

Trade Tips:

• The current spot reference is hovering above 7 & 21-DMA levels (spot ref: 1.3507 levels), contemplating prevailing bullish sentiments in the major trend and today’s mild bearish swings of this pair, it is wise to trade boundary spread options strategy using upper strikes of 1.3550 levels and lower strikes at 1.3441 levels to attain exponential yields.
• As we could foresee upside risks in the weeks to come, on hedging grounds, we advocate initiating longs in USDCAD futures contracts of mid-month tenors with a view to arresting further upside risks. 

Currency Strength Index: FxWirePro's hourly CAD spot index is flashing at 20 levels (which is mildly bullish), while hourly USD spot index was at -75 (bearish), while articulating at (07:10 GMT).

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex