USD/CAD bullish trades setup on prolonged uptrend line and rising channel:
Technical Chart and Candlestick Patterns: USDCAD’s bulls are spiking through the rising channel in intermediate trend (refer weekly) and major uptrend through uptrend line (on monthly plotting).
While hammer and bullish engulfing candles were traced out at 1.2463 and 1.2828 levels respectively (on monthly terms) ever since then uptrend of this pair has resumed. Engulfing patterns popped up at 1.3274 and 1.3296 levels even on weekly terms.
Most importantly, these bullish patterns have developed the ascending channel pattern in the intermediate trend. The pair has tested channel support at 1.3112 levels, consequently, the current price has spiked well above EMAs with bullish crossovers.
To substantiate this bullish stance, both leading oscillators ( RSI and stochastic curves) show the upward convergence to indicate the strength in the uptrend and the intensified buying momentum.
While bullish DMA and MACD crossovers also indicate the upswings to prolong further.
Trade Tips: Contemplating above technical rationale, on daily trading grounds, at spot reference: 1.3470-80 levels, we advocate executing one-touch call options strategy with a view of participating in prevailing rallies, use upper strikes at 1.3520 levels, that means the strategy for 40-50 pips is likely to fetch leveraged yields as long as the underlying price keeps spiking towards upper strikes on the expiration.
Alternatively, we advocated initiating longs in USDCAD futures contracts. We continue to uphold the same strategy by rolling over with June’19 delivery for the major uptrend.
Currency Strength Index: FxWirePro's hourly CAD spot index is flashing at -36 (which is mildly bearish ), while hourly USD spot index was at -26 (mildly bearish ) while articulating at 06:54 GMT .
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