FxWirePro: USD/CAD bears in minor trend slide through sloping channel, bulls in major trend spike through rising channel – Trade boundary strikes

• Technically, near term resistance is around 1.2965 levels and one can expect more upswings only upon any convincing break-out above these levels. Minor trend slides through sloping channel. For now, the bulls are activated at strong channel support of 1.2887 levels. But the momentum is yet to confirm, while trend indicators signal more slumps upon bearish DMA and MACD crossovers & intensified bearish momentum (RSI & stochastic curves’ downward convergence, refer daily chart). While the major trend spikes through rising channel, and shooting star pops-up exactly at channel resistance to plummet prices below 7EMA, further weakness signaled by momentum oscillators, the momentum oscillators indicate Over Bought pressures. On the lower side, near term support is at around 1.2887 levels and any convincing break below will drag the pair down till 1.2741.
• Well, we have revised our CAD forecasts weaker in light of a more hostile trade policy environment, which may last through US mid-terms, and some supply- bottleneck renewed downside risk in crude prices. We expect USDCAD now to remain at 1.30 by Q3 (prior forecast 1.26), the high end of the range seen recently, before moving back towards the middle of the range around the turn of the year (end-17 revised to 1.27 from 1.24 prior) on account of escalating US and other economies trade war. But for now, scenarios seem to be turning around the table.
• WTI Crude oil prices has shown a huge recovery from the low of $64.45 to the current $69.79 levels. While OPEC has announced that output is set to increase by 1MMbbls/d. It hits high of $71.45.
• Trade tips: At spot reference: 1.2912 levels, it is wise to trade using boundary options and attain exponential yields via upper strikes at 1.2961 and lower strikes at around 1.2874 levels. The trading between these strikes likely to derive certain yields in this perplexed trend in the short term, more importantly, these yields are exponential from spot movements. For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 1.2961 > Fwd price > 1.2874).

Currency Strength Index: FxWirePro's hourly CAD spot index is flashing at 101 levels (which is bullish), while hourly USD spot index was at -67 (bearish) while articulating at (07:12 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex