USD/CAD has been bouncing to evidence strength, it has breached 1.2350 levels and most likely to prop up 1.2395 levels.Currently the pair is trading at around 1.2355 levels, the pair is all boosted to hit 1.2400 psychological levels within no time.The immediate support can be figured out at 1.2320 levels. Any breach below this level will drag upto 1.23 levels.On upside the key resistance can be found at 1.2395 levels a break above this level will hit upto 1.2440.We recommend buying binary calls of this pair on every dips or even at current levels for a target of 25-30 pips with ease.Hedgers should be little cautious as ATM calls trading at premium which is quite costlier.We reckon ITM calls priced fairly than ATM calls as net present value of both instruments indicates their price differences as shown below.As shown in the nutshell, net premiums of ITM calls and ATM calls have been compared with their NPVs.NPV of In-The-Money calls are at 9.83% while At-The-Money calls trading at 16.78% more than its NPV. Hence, hedgers are advised to avoid ATM calls and prefer ITM calls as their safeguarding instruments.
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