EUR/CAD technicals & trade set-up

FX:EURCAD   Euro / Canadian Dollar
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Technical Glimpse: Ever since the pair took supports at 1.4283, bulls consolidate the gains, but for now a stiff resistance is seen at 1.4406 levels from last four consecutive days.

The pair hasn't been able to break out above resistance at 1.4406 levels to slid below 21DMAs.

As you can clearly observe the downswings are slipping through sloping channel, the current prices consistently test EMAs as resistance (see weekly charts). But let’s never isolate as there is no signal from any other indicators.

RSI & Stochastic on weekly curves have been faltering to confirm the price bounces on daily charts , while MACD has been well below zero that signifies the price declines to prolong.

Even if bulls manage to break after resistance we see maximum upside targets capped at channel resistance.

Having mentioned that, in medium term the trend is bearish bias

On monthly plotting, the same sentiments are evidenced ever since the formation of shooting star at 1.5127 levels with both leading oscillators ( RSI & Stochastic ) to converge the price dips that indicates the selling momentum.

Trade Tips:

If you're so keen or aggressive on present bounces and expects more price recoveries then below strategy is advisable.

Ideally, this is an options trading strategy that is constructed by holding underlying spot FX while simultaneously buying the protective put and shorting calls against that holding.

While you're holding longs in spot FX of EURCAD , go short in 1W (1.5%) OTM striking call and long in 1M (1%) OTM striking put.

This collar strategy is the best suitable if you're writing covered calls to earn premiums but wish to protect himself from an unexpected sharp drop in the price of the underlying security.
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