- AUD/CAD has broken major trendline resistance at 1.0175, bias higher.
- We have seen a decisive break above 5-DMA which was capping upside from the past few sessions.
- Bearish divergence on RSI still keeps possibility for downside in the pair.
- Break below 20-DMA will confirm bearishness. Scope then for test of 100-DMA at 0.9984.
- Australia unemployment report due Thursday, 16th March will be the main driver for the pair.
- Focus also on oil price movements. U.S. oil which has slipped below $49 mark for the first time since Jan 2017 keeps downside pressure on CAD.
- Violation at 100-DMA finds next major support at daily cloud by 0.9925.
Support levels - 1.0163 (5-DMA), 1.0121 (20-DMA), 1.010 (23.6% Fib retrace of 0.96439 to 1.02537 rally)
Resistance levels - 1.0215 (Mar 7 high), 1.0236 (78.6% Fib), 1.0253 (March 1 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Overbought
4H Bullish Neutral
1D Neutral Neutral
1W Bullish Neutral
Recommendation: Good to go long, SL: 1.0160, TP: 1.0250/ 1.03
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 107.014(Highly bullish), while Hourly CAD Spot Index was at -79.011 (Bearish) at 0740 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
