FxWirePro: AUD/CAD closes below weekly 200-SMA, scope for test of 61.8% Fib at 0.9626

• AUD/CAD has broken below major trendline support at 0.99 levels, bias lower.
   
• The pair has closed below weekly 200-SMA at 0.9823 in the previous weeks trade.
   
• Downside finds immediate support at 0.9773 (50% Fib of 0.91502 to 1.03975 rally). Break below will see drag till 61.8% Fib at 0.9626 levels.
   
• Momentum indicators on weekly charts are biased lower and MACD support downtrend.
   
• We see bearish invalidation only on a close above weekly 200-SMA at 0.9824.
   

Support levels - 0.9773 (50% Fib retrace of 0.91502 to 1.03975 rally), 0.9730 (July 21 2016 low), 0.97

Resistance levels - 0.98, 0.9821 (5-DMA), 0.9824 (weekly 200-SMA), 0.99 (trendline support turned resistance)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CAD-holds-minor-support-at-09960-good-to-go-short-on-break-below-754520) has hit all targets.

Recommendation: Good to go short on rallies around 0.98/0.9810, SL: 0.99, TP: 0.9770/ 0.9730/ 0.97/ 0.9630

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -102.289 (Bearish), while Hourly CAD Spot Index was at 83.6776 (Bullish) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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