- AUD/CAD has shown a decisive break above major trendline resistance at 0.9955.
- The pair is currently hovering around 1.00 mark, bulls now eyes 200-DMA at 1.0033.
- Reserve Bank of Australia (RBA) maintained a hawkish tone in its July monetary policy meeting minutes, released earlier today.
- Australia's employment report for the month of June, due later this week will provide further impetus.
- Technical studies support upside in the pair, Stochs and RSI are biased higher, while MACD is showing a bullish crossover.
Support levels - 0.9968 (38.2% Fib), 0.9955 (trendline resistance turned support), 0.9920 (20-DMA)
Resistance levels - 1.00, 1.0033 (200-DMA), 1.0085 (June 27 high)
Call update-1: Our previous call (http://www.econotimes.com/FxWirePro-Bullish-RSI-divergence-on-AUD-CAD-raises-scope-for-upside-good-to-go-long-on-dips-801907) has hit all targets.
Call update-2: We had suggested a long call (http://www.econotimes.com/FxWirePro-AUD-CAD-finds-major-resistance-at-09955-recommend-long-positions-only-on-break-above-805333) on break above 0.9955.
Recommendation: Stay long, SL: 0.9920, TP: 1.0/ 1.0033/ 1.0085
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 171.673 (Bullish), while Hourly CAD Spot Index was at -8.41402 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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