- AUD/CAD has been recovering from 6-month lows of 0.9594 on 2nd Jan.
- Upside in the pair remains capped by 20-DMA currently at 0.9733.
- The pair finds major resistance at 0.9734 which is a convergence of 20-DMA, channel top and 61.8% Fib.
- Only decisive break above to see extension of upside, we then see scope for test of 50% Fib at 0.9860.
- On the flipside, breach below 5-DMA support at 0.9685 could see test of 0.9594 (Jan 2nd low).
- Technical studies are biased higher, RSI and Stochs support upside.
- Support levels - 0.9685 (5-DMA), 0.9671 (Jan 5 low), 0.9661 (Jan 4 low)
- Resistance levels - 0.9734 (20-DMA, channel top, 61.8% Fib), 0.9795 (Dec 28 high), 0.9823 (200-DMA)
Recommendation: Long break above 0.9734, SL: 0.9685, TP: 0.9795/ 0.9823/ 0.9860






