EURCAD minor trend slides through sloping channel (refer ), where we traced out gap-down in the recent past that nudges prices below DMAs upto channel support.
For now, bulls bounce back exactly at that juncture with pattern, momentum oscillators indicate pressures, more rallies possible on sustenance above 21DMA coupled with the intensified momentum.
On the contrary, Although candles with big real bodies are buying interests in this pair, the sloping chart pattern is in nature.
Moreover, on a broader perspective, prevailing upswings are not backed by momentum confirmation on monthly terms.
Even though the major trend spikes through , pops-up at stiff resistance at 1.6148 levels followed by dips (refer monthly plotting), both leading and lagging indicators on this timeframe signal faded strength.
Both and curves are showing the downward convergence to the price slumps (monthly). This indicates the lingering sentiments. The lagging indicators have been indecisive but slightly bias ( shows crossover).
Hence, contemplating the current price trend (upside risks in minor trend and downside risks in major trend), at spot reference: 1.5102 levels, credit put spreads likely to favour both bulls in short run and bears in the major trend, one can write 1m (1%) in the money put while initiating longs in 1m out of the money put, the structure could be constructed at net credit.
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 23 (which is mildly ), while hourly CAD spot index was at -66 ( ) at 12:19 GMT .