Technical Chart and Candlestick Patterns: USDCAD’s bullish engulfing candles at 1.3321 and 1.3296 levels are traced out (on both daily and weekly terms respectively) that has also signaled strength in upswings of this pair.
Most importantly, these bullish patterns have developed an 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. Similarly, it has tested wedge support at 1.3284 levels to spike above DMAs.
While both leading oscillators ( RSI and Stochastic curves) show upward convergence to indicate the strength in the uptrend and the intensified buying momentum.
To substantiate this buying sentiment, bullish DMA & MACD crossovers also indicate the upswings to prolong further.
Hence, the prevailing uptrend is most likely to prolong further if it breaks out wedge resistance (refer daily chart ).
Trade Tips: One daily trading grounds, at spot reference: 1.3353 levels, we advocate executing one-touch call options strategy with a view of participating in prevailing rallies, use upper strikes at 1.3363-68 levels, that means the strategy for 10-15 pips is likely to fetch leveraged yields as long as the underlying price keeps spiking towards upper strikes on the expiration.
Alternatively, contemplating above technical rationale, we advocated initiating longs in USDCAD futures contracts of April’19 delivery for the major uptrend. We continue to uphold the same strategy by rolling over.
Currency Strength Index: FxWirePro's hourly CAD spot index is flashing at -99 (which is bearish ), while hourly USD spot index was at -76 ( bearish ) while articulating at 11:00 GMT .
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