- AUD/CAD has shown a decisive break at major trendline support at 0.9645.
- Upbeat Canadian housing data and bullish oil prices underpin Loonie weighing on the pair.
- Technical indicators are biased lower, momentum with the bears.
- RSI at 33 levels with scope for further downside. We see -ve DMI dominance. MACD supports downside.
- The pair finds strong support at 0.9555 (trendline). Break below will accentuate weakness.
- Next major bear target lies at 78.6% Fib at 0.9417. Violation there could see test of 0.9323 (2016 low).
- On the flipside, 20-DMA at 0.9707 is strong resistance, break above will see further upside.
Support levels - 0.9555 (major trendline), 0.95, 0.9417 (78.6% Fib)
Resistance levels - 0.96, 0.9631 (5-DMA), 0.9708 (20-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CAD-extends-break-below-200W-SMA-eyes-trendline-at-09645-stay-short-1280888) has hit all targets.
Recommendation: Book partial profits. Trail SL to 0.97, hold for further downside. Target 0.95/ 0.9420
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 57.8115 (Neutral), while Hourly CAD Spot Index was at 176.051 (Bullish) at 0820 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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