FxWirePro: AUD/CAD capped below 38.2% Fib, good to short rallies

• AUD/CAD trades in a narrow range, intraday bias lower.
   
• The pair was rejected at 38.2% Fib retrace of 1.03975 to 0.96450 fall at 0.9933 on Monday.
   
• 20-DMA at 0.9863 is strong support on the downside, decisive break below will see further downside.
   
• Intraday bias is bearish, Stochs are biased lower and MACD is showing a bearish crossover on signal line.
   
• The pair is pivotal around 0.9826 levels (200-DMA), break below will accentuate weakness. We then see scope for test of 0.9650 levels.
   
• On the flipside, close above 5-DMA at 0.9912 could see test of 1.00 (50% Fib retrace of 1.03975 to 0.96450 fall).
   

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish              Neutral       
4H          Bearish              Neutral       
1D          Bearish              Neutral        
1W         Bearish              Neutral  

Support levels - 0.9897 (5-DMA), 0.9863 (20-DMA), 0.9845 (50-DMA), 0.9828 (200-DMA)

Resistance levels - 0.9933 (38.2% Fib), 1.0021 (50% Fib), 1.0040 (cloud top)

Recommendation: Good to go short on rallies around 0.9930, SL: 1.00, TP: 0.99/ 0.9865/ 0.9845

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 55.4514 (Bullish), while Hourly CAD Spot Index was at -15.4719 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.