FxWirePro: Hanging man formation on USD/CAD upswings; one touch vega spreads to trade HY vols

When we plotted daily chart, it seems like USD taking a halt from its non-stop ruthless bull run against CAD which has started almost a month ago (on 18^th June). It's loonie that is looking weaker against almost all major pairs, the crude price is the culprit for such ruthless slumps. The pair has spiked up from the lows 1.2126 levels with minor hick-ups to reach 6 year's highs.

We spotted out a hanging man on EOD charts on upswings but there was no clarity from leading oscillators even though both RSI and stochastic reached overbought zones.

So, we recommend on speculation basis buying one touch binary vega calls in order to extract leverage on extended profits. By employing these binary vega calls one can not only multiply the returns by twice, thrice or even pour returns unimaginably but also upbeat the implied volatility. But do remember this call is strictly on speculative grounds.

The prime merits of such one touch option spreads are high yields during high volatility plays. Wider spreads indicates lack of liquidity. The spreads for one touch USD/CAD options are constant time and barrier levels. Usually, such binary options for every change in 1 pip the relative change in option price 0.01% or even exponential at high implied volatility times. We all know that the major driving force for loony's depreciation has been dropping global crude prices.

Today's US manufacturing PMI and new home sales data play a significant role in setting up of next stage for USD/CAD and thereby during the US trading session would experience the high volatility. We believe one touch Vega spreads can be the best suitable options to trade HY vols.