EURCAD has bottomed out at strong support at 1.4915 levels. Hammer pattern candle has occurred at 1.4949 levels, this bullish pattern candle takes-off rallies above DMAs with bullish MACD & DMA crossovers.
For now, the extension of rallies seems to be most likely on the intensified buying momentum.
While the trend indicators (bullish DMA & MACD crossovers) signal minor uptrend likely to extend further, both momentum and trend indicators signal bullish pressures (refer daily chart).
On a broader perspective, please be noted that the occurrences of shooting stars exactly at channel resistance followed by dips, and hammers pop-up quite often at the channel support in the recent past (monthly plotting) has been prolonging the rising channel pattern. This price behavior has been developing ascending channel formation.
Trade Tips: Contemplating above technical rationale and capitalizing on prevailing price dips, at spot reference: 1.4991 levels, it is wise to buy in the money call options (strikes at 1.5010 levels), the strategy would likely fetch us handsome yields with magnified effects as the underlying spot FX keeps spiking on the expiration.
Alternatively, adding long positions in futures contracts of mid-month tenors is advocated on hedging grounds.
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 66 (which is bullish), while hourly CAD spot index was at 68 (bullish) at 10:04 GMT.
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex
