- AUD/CAD is trading in a narrow range on the day, finds stiff resistance at 50-DMA at 0.9768.
- Technical studies are bullish. The pair has shown a decisive breakout at 21-EMA raising scope for further upside.
- Momentum indicators are bullish, trend indicators also support upside.
- Trade tensions and geopolitical concerns and the resulting risk-off seems to have capped upside in the pair.
- CAD is likely to take cues from oil which is extending the recent slide, slips for the 4th straight session.
- OPEC signaled that it might dial back on the current output cuts in order to compensate for Venezuela and Iran potential production drop.
- Weak oil could weigh on the commodity-linked currency - CAD triggering upside in the pair.
- Break above 50-DMA could see further upside. Next bull target lies at 38.2% Fib at 0.9817 ahead of 100-DMA at 0.9857.
Support levels - 0.9724 (5-DMA), 0.9696 (21-EMA), 0.96, 0.9588 (May 16 low)
Resistance levels - 0.9768 (50-DMA), 0.98, 0.9817 (38.2% Fib), 0.9857 (100-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CAD-struggles-at-21-EMA-good-to-go-long-on-close-above-1322270) has hit TP1.
Recommendation: Book partial profits. Trail SL to 0.9725, hold for further upside on break above 50-DMA.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -34.8792 (Neutral), while Hourly CAD Spot Index was at -110.409 (Bearish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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