EUR/CAD Chartpack - Technicals & Trade Setup

FX:EURCAD   Euro / Canadian Dollar
EUR/CAD minor trend slides in sloping channel and major trend spikes through rising channel – Trade diagonal credit spreads:

EURCAD minor trend slides through sloping channel (refer daily chart ), 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 engulfing pattern, momentum oscillators indicate bullish pressures, more rallies possible on sustenance above 21DMA coupled with the intensified bullish momentum.

On the contrary, Although  bullish candles with big real bodies are buying interests in this pair, the sloping chart pattern is bearish 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 rising channel , shooting star 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 RSI and stochastic curves are showing the downward convergence to the price slumps (monthly). This indicates the lingering bearish sentiments. The lagging indicators have been indecisive but slightly bearish bias ( MACD shows bearish 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 bullish ), while hourly CAD spot index was at -66 ( bearish ) at 12:19 GMT
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