Major barriers for bulls - 1.3097 and 1.3145, a break out above would expose more bullish targets.
On the contrary, since bulls have halted again at resistances of 1.3097 & 1.3145 to drift back in range.
Trend drifting in range although the bounces after testing support at 21DMA.
An expected plateauing of the oil price trend going forward also eliminates what has been one of the key factors behind CAD strength in the first half of the year.
WTI crude dropping to 44.51 a barrel, simultaneously USDCAD gained from the day lows of 1.3029 levels to the current 1.3078 levels.
On a broader perspective, ever since the bulls bounced back above 21EMA, it seems like the pair is on the verge of handle formation. However, there is no strong signal from both leading and lagging indicators.
But CAD offers good long-term value and investors should look to fade any sustained weakness in coming months.
The loonie was lower against the euro, with EURCAD rising 0.23% to 1.4417.
When the research and instincts are so certain, instead of dealing spot FX, on the trading grounds one can think of initiating longs in on touch binary calls of USDCAD for 20-30 pips to extract maximum leverage for extended profitability.
By employing At-The-Money binary delta calls one can multiply returns exponentially. But do remember these are exclusively for speculative basis.
