- AUD/CAD recovery capped below 5-DMA at 0.9813, further upside only on break above.
- The pair has retraced brief dip below triangle base, and has held minor trendline support at 0.9675.
- Bank of Canada's surprise decision to hike its policy rate by 25 bps to 1% on Wednesday boosted the CAD.
- Later during the NA session focus would be on the latest Canadian employment details for the month of August for further impetus.
- Weekly charts support downside in the pair. Price action is below weekly cloud and technicals support downside.
- Break below trendline at 0.9675 raises scope for weakness till 0.9623 (Major trendline).
- Bearish invalidation only above 20-DMA at 0.9913.
Support levels - 0.9723 (88.6% Fib 0.9643 to 1.0345 rally), 0.9675 (Sept 6th low), 0.9643 (Jan 3 lows)
Resistance levels - 0.9794 (78.6% Fib), 0.9814 (5-DMA), 0.9912 (61.8% Fib)
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -4.63837 (Neutral), while Hourly CAD Spot Index was at 112.878 (Bullish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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