Despite the shooting star formation, you are seeing upswings after sensing strong support at 1.2788 levels (refer daily chart).
We’ve stated in our earlier post also that USDCAD makes equidistant travel after breaching channel support. After travelling upto next channel support (at around 1.2061 levels), the bulls are activated, and that’s where hammer pops up to counter the previous corrective mode (refer monthly charts).
For now, we could foresee more rallies upon the occurrence of this bullish pattern and both leading oscillators are in bulls’ favor.
On a broader perspective, the major trend of this pair has gone in corrective mode from last 6-months or so, ever since it breached below channel support & bear swings were able to retrace upto 50% Fibonacci levels but the hammer pattern counters to hover back at 7EMAs.
While RSI and stochastic curves on both timeframes signal buying sentiments as the leading oscillators evidence the upward convergence constantly along with the price spikes.
To substantiate these bullish stances, MACD on daily terms, indicates upswings to prolong further by evidencing bullish crossover in the bullish trajectory.
As a result, the pair that was in corrective mode even after bouncing back above 38.2% Fibonacci levels, the buying sentiments have been intensified.
Consequently, USDCAD bulls resume from this month, it is currently bouncing back to 3-months’ highs at 1.2826 levels.
Trade tips:
Well, contemplating above technical reasoning, on speculative grounds, at spot reference around 1.2826 levels, we advise bidding for one touch binary call options.
This leveraged instrument is likely to fetch magnified yields than spot FX as long as underlying spot keeps spiking.
Currency Strength Index: FxWirePro's hourly USD spot index is flashing positive 80 (which is bullish), while hourly CAD spot index was at a tad below 25 (mildly bullish) at 06:59 GMT. For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex
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