- AUD/CAD capped at major trendline resistance at 0.9975, we see upside only on break above.
- Technical indicators are biased higher. RSI shows strength at 57 levels. Stochs are biased higher.
- That said, bearish divergence on Stochs keeps scope for downside in the pair.
- 200-DMA at 0.9875 is major support below 5-DMA at 0.9938. Violation at 200-DMA could see major weakness.
- On the upside, breakout at major trendline resistance could see test of 1.0052 (61.8% Fib retrace of 1.03458 to 0.9579 fall).
Support levels - 0.9948 (5-DMA), 0.9917 (21-EMA), 0.9874 (200-DMA)
Resistance levels - 0.9975 (major trendline), 1.00, 1.0052 (61.8% Fib retrace of 1.03458 to 0.9579 fall)
Recommendation: Good to go long on break above major trendline resistance, SL: 0.9910, TP: 1.00/ 1.0050/ 1.0075/ 1.0180.
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