AUD/CAD was rejected by strong trendline resistance at 1.0040 and is extending downside to currently trade at 0.9982.
- The pair has strong support at 0.9960 (5-DMA) and breaks below will find next support at 0.9933 (cloud top).
- On the upside we see strong resistance at 1.0040 (trendline) ahead of 1.0054 (Mar 9th highs).
- Oil is trading moderately lower after Iran refused to commit to production freeze, there by pouring cold water on optimism surrounding possibility of a joint production freeze.
- Drop in oil is likely to weigh on CAD and keep AUD/CAD supported, weakness only on breaks below 0.9960.
Recommendation: Go long on breaks above 1.0040, SL: 0.9960, TP: 1.1185/1.0110/1.0170.
