AUD/CAD is retracing from 1.0169 (multi-month highs) hit on Dec 31st, as loonie battered on oil weakness.
- Oil prices saw slight rebound as investors expect deal to address a global crude supply glut.
- OPEC and non-OPEC producers could reach consensus to reduce output amid one of the biggest supply gluts in decades.
- Markets await Canadian November GDP data due later in the day, expectations are for a rebound in growth after contraction in October.
- The pair trades a falling triangle pattern and is awaiting a breakout for further direction.
- Stochs and RSI are pointing north for the day, break above 10-DMA at 0.9957 could take the pair to 1.0 levels. We see weakness only below 0.9840 (trendline support).
Recommendation: Good to go long on dips around 0.9925/30, SL: 0.9880, TP: 1.0
