- AUD/CAD is extending downside after a 'Bearish Doji Star' formation on daily charts.
- The pair has shown a break below 20-DMA which was strong support.
- We now see scope for test of 0.9794 (78.6% Fib retrace of 1.03458 to 0.97348 fall).
- Violation at 78.6% Fib finds next major support 0.9745 (rising trendline).
- Australia CPI data miss and dovish comments from RBA's Lowe dent Aussie, supporting downside in the pair.
Support levels - 0.9909 (20-DMA), 0.99, 0.9879 (23.6% Fib retrace of 1.03458 to 0.97348 fall), 0.9825 (weekly 200-SMA)
Resistance levels - 0.9968 (38.2% Fib retrace of 1.03458 to 0.97348 fall), 0.9979 (5-DMA), 1.0032 (200-DMA)
Call update: We had advised a short below 20-DMA in our previous call (http://www.econotimes.com/FxWirePro-AUD-CAD-holds-20-DMA-support-weakness-only-on-break-below-816283).
Recommendation: We stand by our short call. Bias lower. Stay short.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -46.6449 (Neutral), while Hourly CAD Spot Index was at 103.134 (Bullish) at 0915 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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