- AUD/CAD has closed down the bullish gap open and has extended downside after failing to hold gains above 5-DMA.
- The pair is down 0.31% at 0.9758 at the time of writing, bias lower.
- Bank of Canada's surprise decision to hike its policy rate by 25 bps to 1% last week keeps the CAD supported.
- Weekly charts support downside in the pair. Price action is below weekly cloud and 200-SMA.
- Break below minor trendline at 0.9675 raises scope for weakness till 0.9630 (major trendline).
- 5-DMA caps upside, we see bearish invalidation only above 20-DMA at 0.99.
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 - 0.9793 (5-DMA), 0.9794 (78.6% Fib), 0.9829 (weekly 200-SMA), 0.9912 (61.8% Fib)
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