- AUD/CAD is extending slump for 6th successive session, momentum still with the bears.
- Crude oil prices jumped sharply after better than expected crude oil inventory data, supporting CAD.
- The pair is trading a 'Symmetric Triangle' pattern and is extending decline after rejection at triangle top.
- Price action has broken below daily cloud and has broken below 61.8% Fib retrace of 0.9643 to 1.0345 rally at 0.9912.
- We see scope for test of 0.9760 on breach of weekly cloud base at 0.9861.
- On the flipside, 200-DMA at 1.0008 is stiff resistance, we see upside resumption only on close above.
Support levels - 0.9860 (July 26 low), 0.98, 0.9794 (78.6% Fib of 0.9644 to 1.0346 rally)
Resistance levels - 0.9936 (5-DMA), 1.0008 (200-DMA), 1.0045 (trendline), 1.0077 (38.2% Fib)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CAD-rejected-at-200-DMA-at-10017-good-to-go-short-on-rallies-855586) has hit TP1&2.
Recommendation: Book partial profits. Bias lower, stay short.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -48.6484 (Neutral), while Hourly CAD Spot Index was at 118.57 (Bullish) at 0920 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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