Usdcad Analysis – USD/CAD uptrend on verge of handle formation
USD/CAD uptrend on verge of handle formation however short-term bulls drift in narrow range as buying momentum shrinks away: The US dollar bulls appear to have taken a halt in the tight range between 1.3588 and 1.3378 against CAD, the bulls’ momentum shrinking away in tight range, after last week’s long legged doji formation at 1.3496 levels, in the week once more the formation of long legged doji is the most likely (see weekly plotting).
While CAD bulls gaining traction in this tight range on account of OPEC’s meeting that’s scheduled on this 30th (see each daily and monthly plotting). though the present prices ar consistently spiking well above DMAs testing upper range as the stiff resistance at 1.3588 to go in the slender range. For now, the breach above exposes more upside potential due to additional bullish momentum offered by leading oscillators on monthly terms.
On a broader perspective, as you’ll probably make out from monthly plotting, ever since the pair has taken supports at 1.3070 levels, bulls in major trend resumed and since then prices spiking higher once more above 7EMA to resemble a handle pattern in conjunction with the saucer pattern earlier. each leading oscillators signal buying interests on this timeframe, as RSI (14) evidences a bullish convergence with the rising prices above 62 levels after testing support at 52 levels multiple times in the past, thus we believe there has been buying sentiments atleast in the medium run. while stochastic has been quite decisive on each weekly and monthly terms to signal momentum in this buying sentiment but slightly bullish bias over medium terms.
To substantiate this bullish stance, MACD’s bullish crossover above zero levels signals uptrend to prolong additional. If the intermediate bulls manage to interrupt higher than higher vary (i.e 1.3588), then the rallies continue to persist, as a result, handle pattern is possible in coming months. Hence, to participate during this bull run we encourage option spreads like patterns to stay our FX portfolio safeguarded regardless of swings. we come up with such strategy in our upcoming write-ups.