USD/CAD saucer and handle pattern to bring in bearish streaks
USD/CAD saucer and handle pattern to bring in bearish streaks, heading southwards for next strong supports – Tunnels spread best flavor of speculation:
In the broader perspectives, Shooting star pattern have shown their bearish effects on monthly patterns but for now, bears resuming rallies as the formation of handle pattern seems completed to the previous saucer pattern (see monthly charts).
For now, more bearish rout is on cards on any break below supports at 1.3280 levels.
After spinning top & doji patterns occurred during handle formation, upswings seem to be exhausted (see monthly charts).
Bullish momentum is shrinking away at 1.3598 levels.
Rising volumes on declining trend is in conformity to the downtrend.
Both leading oscillators signal selling interests, as RSI (14) evidences a bearish convergence with the declining prices below 49 levels, on monthly terms the indicator is puzzling, so we believe there has been clear selling sentiment for the day and definitely no momentum for bull swings atleast in the medium run.
While stochastic has also been signaling momentum in this selling interests both in daily as well as monthly terms.
Trade tips:
Well, contemplating above technical reasoning, on speculative grounds we advise tunnel spreads which are binary versions of the debit put spreads favoring bearish indications.
This strategy is likely to fetch leveraged yields than spot FX and certain yields keeping upper strikes at 1.3312 and lower strikes at 1.3254 levels.
In the broader perspectives, Shooting star pattern have shown their bearish effects on monthly patterns but for now, bears resuming rallies as the formation of handle pattern seems completed to the previous saucer pattern (see monthly charts).
For now, more bearish rout is on cards on any break below supports at 1.3280 levels.
After spinning top & doji patterns occurred during handle formation, upswings seem to be exhausted (see monthly charts).
Bullish momentum is shrinking away at 1.3598 levels.
Rising volumes on declining trend is in conformity to the downtrend.
Both leading oscillators signal selling interests, as RSI (14) evidences a bearish convergence with the declining prices below 49 levels, on monthly terms the indicator is puzzling, so we believe there has been clear selling sentiment for the day and definitely no momentum for bull swings atleast in the medium run.
While stochastic has also been signaling momentum in this selling interests both in daily as well as monthly terms.
Trade tips:
Well, contemplating above technical reasoning, on speculative grounds we advise tunnel spreads which are binary versions of the debit put spreads favoring bearish indications.
This strategy is likely to fetch leveraged yields than spot FX and certain yields keeping upper strikes at 1.3312 and lower strikes at 1.3254 levels.
