While both leading oscillators ( & curves) show upward convergence that signal buying pressures.
To substantiate this buying sentiment, trend indicators are in conformity to the uptrend, DMA and crossovers signal upswings to prolong further.
Where the price rallies in intermediate trend, broke-out stiff resistance, now on the verge of retracing 61.8% Fibonacci levels, the sentiment backed by both leading & lagging oscillators on this timeframe too.
The next immediate stiff resistance is seen at 1.3129 levels and the strong supports are seen at 1.30 and 1.2911 levels.
Trade tips: At spot reference: 1.3087, contemplating prevailing sentiments one can buy double touch binary calls (1.3129) to leverage payoffs. The magnified yields are most likely if the underlying spot FX keeps spiking upto above stated strikes of 1.3129 (i.e. means another upward journey of 30-35 pips).
Well, on hedging grounds, one can keep the potential risk of this pair on the check by adding long positions in contracts as the underlying spot FX has constantly been rising from the lows of 1.2247 levels to the current 1.3066 levels. The long position of mid-month tenors are advocated with a view to arresting further upside risks, we reiterate that it is wise to use dips to deploy long hedges using the derivative contracts.
Currency Strength Index: FxWirePro's hourly CAD spot index is displaying shy above -107 levels (highly ), while hourly USD spot index was at 52 ( ) while articulating (at 11:51 GMT ).