I bought call options today on the usdcad pair and the reason for this is purely technical as there are not many economic releases at this time of the year.
The technical picture looks bullish though as on the 4h chart we’re consolidating in a triangular formation and it may just be a triangle that should break higher. In two days from now end of month and end of year will see market pushing into long usd positions as the monthly chart on usdcad shows the RSI indicator right at extremes. My take is that it is going to keep pushing higher.
Therefore, I like higher values and the expiration date is this coming Friday by the time the US markets are closing.
The pattern the usdcad forms is called a triple three running and the measured move for the third wave points to values higher than 1.20 level.
It remains to be seen if the market will confirm this scenario.
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