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AUD/CAD whipsaws on DMA push southwards, channel acts as support

FX:AUDCAD   Australian Dollar/Canadian Dollar
55 0 3
In March month, it has completely shown whipsaws on DMAs and on resistance at 0.9955 levels (see daily chart ).

Their bearish effects have now been seen considering previous rallies.

Although it has taken support at 0.9792 (channel resistance), bullish momentum is not convincing on technical indicators.

It is now facing a stiff resistance at 0.9880 levels (i.e. near 7DMA).

Intraday sentiments have been little bullish , while traders on delivery basis should focus on rallies for fresh shorts as the downswings likely prolong if it doesn't hold firmly at current levels and channel resistance.

On weekly plotting, resembling bearish engulfing occurs, while RSI , Stochs & MACD suggestive of bearish trend continuation.

RSI forming lower lows are indicative of losing strength in current price levels.

While, MACD's bearish crossover and current prices sliding below DMA & EMAs are suggestive of bear trend continuation.

Hence, any break below channel renders more downside potential, in contrast upside targets at resistance 0.9880 levels or upon breach of this level may even drag maximum upto 0.9955, failure swings may lead to downside potential at 0.9818 with continued channel formation again.

Having said that, we're more bearish bias amid small upswings may intervene this major trend.

Trade tips: Well, on speculative grounds, we recommend buying boundary binary options in order not to derive maximum profits but certain yields from this upswing momentum but choosing OTM call strikes at 0.9880 (35 pips above) and ITM call strikes at 0.9812 (25 pips below).

Wider spreads indicates lack of liquidity. Anywhere between above range from upper channel line to resistance (0.9880 - 0.9812) the spreads for one touch AUD/CAD             options are steady tenor and barrier levels and the thereby returns of about 40-55 pips is quite possible.

Please be noted that the this call is exclusively meant for speculation purpose and for intraday, for delivery a close watch on decisive break out and sustenance above channel resistance.
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