EURCAD bulls jump above DMAs with bullish crossover, the stiff resistance is observed at 1.5214 levels. Bulls are shrugging off shooting star occurrence at 1.5174 levels, the demand and supply zone at 1.5214 levels is seen several times in the recent past.
If bulls manage to break-out this level, then we could foresee more rallies upon bullish DMA and MACD crossovers, the rallies upto the next stiff resistance at 1.5293 levels possible.
While leading oscillators are also signalling the intensified bullish momentum as both RSI and stochastic curves are converging upwards.
On a broader perspective, Major trend spikes through rising channel, shooting star pops-up at channel resistance followed by dips, and hammer at channel support (refer monthly plotting), both leading and lagging indicators signal faded strength. You could very well observe as and when the prices touched channel baseline and top line, the price pattern behaves in an adverse way.
Both RSI and stochastic curves are showing the downward convergence to the price slumps (monthly). This indicates the lingering bearish sentiments. The lagging indicators have been indecisive but slightly bearish bias.
Hence, for today, contemplating above technical rationale, at spot reference: 1.5205 levels, bidding one touch binary call options with upper strikes at 1.5225 levels (i.e. about northward 20 pips from the spot level), the strategy would likely fetch us handsome yields with magnified effects as the underlying spot FX keeps rising.
Currency Strength Index: FxWirePro's hourly EUR spot index is at 40 (which is bullish), while hourly CAD spot index at 55 (bullish) at 12:03 GMT. For more details on the index, please refer below weblink:
