But for now, AUD’s strength is tested again at 21DMA like yesterday.
So, one has to be cautious at this juncture as we’re just 15-20 pips away from 0.9906 levels (i.e. 21DMA) as the earlier decisive rejection at 0.9955 should not be disregarded.
While on the flip side, CAD’s strength is dependent on crude’s prices in the future.
Crude prices have now stuck at around $40-42 range per barrel in both WTI and Brent , eyeing on an oil-producers meeting to discuss an output freeze at January's levels. Major producers from the Middle East and Russia will attend the April 17 summit, although tensions remain after Iran and Libya expressed their non-committal stance.
However, at the moment both intraday and EOD charts signal little upside sentiments as we observed the pair has currently been able to hold and sustain the support at channel resistance (0.9782 levels).
On weekly plotting, occurred at 0.9803 levels in last week, currently trading at 0.9896 with resistance at 0.9955 and on downside supports at 0.9861 levels.
Currently, the & curves have been indecisive on weekly terms.
Well, on speculative grounds, we recommend buying one touch binary calls in order to derive maximum leverage benefits from this upswing momentum.
At current spot at 1.9896 the pair likely move in range bounded trend and as a result we have stagnant IVs displaying (9.87%), keeping these factors into consideration we would like to play it safe by achieving certain returns though shorting a strangle ahead of Sunday's OPEC’s meeting.
Thus, initiate shorts in 3D OTM put (1% strike difference referring lower cap) and short OTM call simultaneously of the same expiry (1% strike referring upper cap) (preferably short term for maturity is desired).
Maximum returns for the short strangle is achieved when the GBPCAD price on expiry is trading between the OTM strikes as both the instruments have to wipe off worthless. So that the options trader gets to keep the entire initial credit taken as profit.