USDCAD has been holding tight in the range of 1.3554-1.3505 range, in this process the pair evidenced a whipsaw pattern on 7MA and 21MAs.

But considering previous downswings, it has shown a decisive break out above this range with a big real body bull candle followed up by a resembling dark cloud pattern (see red coloured circle area), it is now on the verge of edging higher towards next resistance at 1.3639 levels.

We see intensified bullish momentum and equally no wonder if it drops upto 1.33-32 levels where it is likely to hold stronger on channel line supports on weekly charts.

Well, all leading indicators are signaling indecision while on the contrary lagging indicators generates buying interest and signify the upswings to prolong.

No surprise if it hits 1.33-32 on south in medium term or 1.3639 on north  in near terms, 1.3791 in zones sooner or later.

But for intraday terms, we rely on RSI and stochastic as they pop up with overbought pressures thus far, so smart way to approach this pair is to deploy the option tunnel using ATM puts is structured as a binary version of a conventional put spread, i.e. long delta puts with higher strikes while writing the lower strikes for a target of 20-25 pips.

Therefore an In-The-Money tunnel would be formed of an In-the-money -0.75 delta put below the current exchange rate less an Out-Of-The-Money put above the exchange rate. The delta of -0.55 on combined position with slightly negative theta is preferred on this execution.