FxWirePro: USD/CAD sustains trendline support – bull run to resume again, prefer BPS for swing trading for 15-20 pips target

Observe price behavior of USDCAD as it has been showing demand and supply equation exactly at trendline supports and resistance lines with technical indicators to substantiate.

For instance, the pair experienced supports accurately at lower channel line 1.3057 with abundant volumes confirmation as well, while RSI and stochastic oscillators signify upswings are fine for the next targets at 1.3212 again. But for intraday selling sentiments are intensifying, debit put spreads on speculation grounds are advised to get benefitted from these swings and need to squared off the long option positions during US sessions after achieving 15-20 pips. Moreover, prevailing crude oil price slumps to drag loony a bit.

Bear Put Spread = Long ATM -0.5 delta at the money put for 15-20 pips and from that point of time short another -1.75% out of the money put with lower strike price with net delta should be at -0.40.

For a net debit bear put spread reduces the cost of trading by the premium collected (on the shorts of OTM put) and keeps trader to participate on upward moves anticipated for next targets 1.3212 as explained above.