USD/CAD likely to breach channel line

Technical & Currency Derivatives Watch: USD/CAD

Pair is currently testing resistance at 1.2428 which is nearing upper channel line. So, 1.2428 has been a crucial resistance for spike up to reach next upper channel. And it is the most likely if CAD doesn't maintain this level and breaches on the upside.

On weekly chart oscillating indicators are also signaling a massive uptrend on this pair.

RSI (14) on weekly chart is trending (51.5840) at around 60 levels with positive convergence to the price line.

Stochastic on the time frame is signaling uptrend with %K line crossover. (%K trending around 62.7866 & while %D at 72.6210).

Pair is currently trading midway of Bollinger bands with upper one flash at 1.1055 and lower one at 1.0653.

Hence, we believe uptrend in medium term remains intact. For speculation perspective, we recommend accumulating long positions on next month futures contracts on every dips.

You cannot predict a fixed profit on long futures. The futures trader keeps adding profit on MTM basis as long as the underlying currency price rallies up.