On intraday terms, amid the current upswings, the rallies have shown failure swings at range resistance at 88.722 levels. Consequently, it has formed whipsaws pattern but is not substantiated by any other technical indicators. Bulls have managed to show the stern rallies since 8th June with minor corrections every now and then.
On a broader perspective, from last three years or so the price behavior has been sliding in the sloping channel.
The interim bulls struggling to clear stiff resistance at range resistance in short run even though pattern breaches stiff channel resistance, for now, more rallies seems to be on cards as rallies spike above EMAs that are backed by intensified momentum (refer monthly charts).
Major resistances 88.712 – 88.756 areas. You could probably observe historic price behavior, failure swings have been observed at the same juncture.
on the 4H chart has been diverging to the rallies, while on monthly terms signals strength as it shows upward convergence to the price rallies.
on the intraday chart has been indecisive, while the leading indicator evidences %k crossover at overbought territory that indicates healthy momentum in the uptrend.
MACD: This indicator has been indecisive on dailies but indicates the extension of bull swings remaining below zero level.
Overall, ideal to buy at every dip, while long-term bulls should cautiously watch out for the breakout above 88.756 resistance levels.
But on intraday speculation purpose, contemplating above technical reasoning, we could foresee equal speculative chances for both bears and bulls ahead of tomorrow’s BoC announcements, hence, double touch binary options strategy is advocated. This options trade is useful for intraday traders who believe the price of an underlying spot FX would undergo a large price movement, but who are unsure of the direction.
At spot ref: 88.683, a trader can use a double touch option with barriers at 88.772 and 88.613, thereby, 20-30 pips are reasonable to speculate this pair on either side.
Some traders view this type of exotic option as being like a straddle position since the trader stands to benefit from a calculated price movement up or down in both scenarios.
While the FxWirePro currency strength index for the CAD amid significant economic data announcements from BoC tomorrow and BoJ next week, is indicating strength by flashing +69 which is , while JPY has been by flashing -89.