FxWirePro: AUD/CAD rejected at 21-EMA, on track to test Wedge base at 0.94, stay short

Refer AUD/CAD chart on Trading View

• AUD/CAD is extending weakness after failure to break above stiff resistance at 21-EMA.
   
• The pair is trading 0.42% lower on the day at 0.9510 at the time of writing.
   
• Major trend for the pair is bearish. Price has resumed weakness after minor pullback was rejected at 21-EMA.
   
• We see scope for test of Wedge base at 0.94. Violation at Wedge base could see further weakness.
   
• On the flipside, 5-DMA is immediate resistance at 0.9559. Break above 21-EMA to see test of Wedge top at 0.9735.
   
• Bearish invalidation only on breakout above slopping Wedge pattern.

Support levels - 0.9486 (Aug 16 low), 0.94 (Wedge base)

Resistance levels - 0.9559 (5-DMA), 0.9597 (21-EMA)

Recommendation: Good to go short on upticks, SL: 0.9560, TP: 0.94

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -49.8526 (Neutral), while Hourly CAD Spot Index was at -11.3084 (Neutral) at 0945 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.