FxWirePro: RSI ensures EUR/CAD uptrend is in sync with channel line; 250-270 pips range for short term speculators

Technical Observation:

• RSI indicates uptrend is healthier: In addition to that, leading oscillators are showing convergence according to the price fluctuations, we have not seen any divergent relations to the prices. RSI (14) looks healthily converging with every price rises and dips, since 04^th June it has only approached oversold zone once on 27^th July. So, RSI signifies the prevailing uptrend remains intact.
  
  
• Stochastic and upper channel: While another leading oscillator (stochastic) hints us the overbought heaviness the moment pair hits upper channel line as the %D line crossover is seen above 80 levels.
  
  
• Bollinger band and RSI: The moment when prices crosses over upper Bollinger band more vigorously, only then RSI shows overbought scenes, otherwise RSI states prices are in sync with uptrend momentum.
  
  
• Channel line: From last one month it is observed that the Euro Canadian pair has been moving in 2^nd channel line band width of 270-280 pips. As shown in the diagram it is quite important to note that if prices are trying to break this range then the very next day there would be adverse price reactions which would mean that the major tolerance level for price is around 270 pips. Option traders with speculating perspectives are advised to use futures contracts considering targets of the range as stated above.