, good to go long on breakout above - EconoTimes)
- AUD/CAD struggles to break major resistance at 200-DMA at 0.9907.
- The pair has resumed upside today after minor weakness on Friday's trade.
- Price action has shown breakout above channel top at 0.9855, raising scope for further upside.
- Breakout at 200-DMA could propel the pair higher, scope then for test of 61.8% Fib at 1.0052.
- On the flipside, retrace into downward channel negates bullish bias. Surging oil prices underpin commodity-linked Loonie.
- Focus also on the Bank of Canada meeting this week. Markets have firm expectations for a rate hike. OIS is pricing an 87% chance of a hike.
Support levels - 0.9855 (channel top), 0.9845 (5-DMA), 0.9820 (20-DMA)
Resistance levels - 0.9907 (200-DMA), 1.00, 1.0052 (61.8% Fib retracement of 1.0345 to 0.9579 fall)
Recommendation: Watch out for break above 200-DMA to go long, target 1.00/ 1.0052
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