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FxWirePro: AUD/CAD rangebound, upside intact as long as support at 200-DMA holds

AUD/CAD chart on Trading View used for analysis

  • AUD/CAD trades rangebound on the day, markets await Canada GDP data.
     
  • Price action is pausing upside after 5 consecutive sessions of gains.
     
  • Technical indicators support further gains. Stochs and RSI are biased higher, momentum bullish.
     
  • The pair is in a near-term bull trend and breakout at 200-DMA has raised scope for further upside.
     
  • That said, we evidence a bearish divergence on Stochs which dents scope for upside.
     
  • Bias higher as long as 200-DMA support holds. Next major resistance lies at 61.8% Fib at 0.98.
     
  • On the flipside, retrace below 200-DMA could see test of 21-EMA. Violation there to see bullish invalidation.

Support levels - 0.9661 (5-DMA), 0.9646 (200-DMA), 0.9568 (21-EMA) 

Resistance levels - 0.9748 (Nov 28 high), 0.9808 (61.8% Fib), 1.00 (78.6% Fib)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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