- Technically, bullish engulfing candles with big real body take off USDCAD rallies above DMAs. For now, the bulls are intensified as the momentum is also confirmed by both RSI & stochastic curves show upward convergence and MACD indicates upswings to prolong further (refer daily chart).
On the other hand, please observe that WTI crude oil price slides steep below 7EMAs yesterday, correspondingly, yesterday, USDCAD has spiked vigorously above 7DAMs. Hence, USDCAD is inversely proportional to the price behavior of WTI crude.
- While the major trend of USDCAD has been spiking through rising channel pattern which is bullish in nature, shooting star pops-up at channel resistance and hammer pattern at channel supports. For now, rallies spike above 7EMAs on strong channel support, strength in uptrend is in conformity to the momentum oscillators (RSI & stochastic curves).
- Trade tips: Contemplating prevailing bullish sentiments of this pair, at current spot reference is hovering at strong support at 1.3295 levels, it is wise to trade double touch options using strikes of 1.3325 levels and attain exponential yields.
- As we could foresee upside risks in the weeks to come, on hedging grounds, we advocate initiating longs in USDCAD futures contracts of mid-month tenors with a view to arresting further upside risks.
Currency Strength Index: FxWirePro's hourly CAD spot index is flashing at -108 levels (which is highly bearish), while hourly USD spot index was at 21 (mildly bullish) while articulating at (06:36 GMT). For more details on the index, please refer below weblink:
