FxWirePro: AUD/CAD extends weakness below 5-DMA, eyes trendline support at 0.94

Refer AUD/CAD chart on Trading View

• AUD/CAD fails to close above 5-DMA, pares gains and closes in the red on Monday's trade.
   
• The pair has formed a Doji formation and is trading 0.19% lower on the day.
   
• Price action continues in a falling Wedge pattern and we see no major signs of reversal.
   
• However, bullish divergence on Stochs on the daily chart keep scope for upside.
   
• The pair is capped below stiff resistance at 21-EMA, we see upside only on break above.
   
• Rejection at 21-EMA could see dip till Wedge base at 0.94 levels. Violation at Wedge base can accentuate weakness.
   
• Breakout on the upside at 21-EMA could see test of 50-DMA at 0.9680.

Support levels - 0.9473 (Aug 23/24 low), 0.94 (Wedge base)

Resistance levels - 0.9523 (5-DMA), 0.9577 (21-EMA), 0.9674 (50-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CAD-finds-stiff-resistance-at-21-EMA-at-09586-good-to-go-short-on-rallies-1420511) is progressing well.

Recommendation: Bias lower, stay short.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 58.5439 (Neutral), while Hourly CAD Spot Index was at 35.6219 (Neutral) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.