FxWirePro: AUD/CAD holds above 0.96 handle, break below major trendline at 0.9645 to see further weakness

• AUD/CAD pauses downside at 0.96 handle, bias still bearish.
   
• Dovish RBA continues to weigh on the Aussie. Thursday will bring Trade Balance data for Australia at 01:30 GMT.
   
• The pair has broken below 200W SMA and is currently hovering around major trendline support at 0.9645.
   
• The pair is trading in a Symmetric Triangle pattern and break below Triangle base support at 0.9645 raises scope for further downside.
   
• Technical indicators on weekly charts are highly bearish. RSI weakness below 50 and biased lower.
   
• Stochs are sharply lower and MACD shows bearish crossover on signal line.
   
• Next major support below Triangle base lies at 0.9579 (Dec 2017 low) ahead of 0.9417 (78.6% Fib).
   
• Immediate resistance is seen at 5-DMA at 0.9673. Bearish invalidation only on retrace above 200W SMA at 0.9810.

Support levels - 0.9626 (61.8% Fib), 0.96, 0.9579 (Dec 2017 low), 0.9417 (78.6% Fib)

Resistance levels - 0.9673 (5-DMA), 0.97, 0.9746 (5W SMA), 0.98

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CAD-extends-break-below-200W-SMA-eyes-trendline-at-09645-stay-short-1280888) has hit TP1/2.

Recommendation: Book partial profits at lows. Watch out for decisive break below Triangle base for further weakness.

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