- AUD/CAD trades 0.22% lower on he day at 0.9702 at the time of writing.
- The pair has broken support at 50-DMA and is on track for further downside.
- Price action is hovering around daily cloud base at 0.9695 which is strong support.
- Technical analysis for the pair supports further weakness. Stochs and RSI are sharply lower.
- Price action is below major EMAs and Bollinger Bands are widening and we see -ve DMI dominance.
- Break below daily cloud to see drag till 0.9554 (May 10 lows). We see bearish invalidation only above 50-DMA.
Support levels - 0.9626 (61.8% Fib retrace of 0.91502 to 1.03975 rally), 0.9606 (May 2 low), 0.9579 (2017 low)
Resistance levels - 0.9748 (50-DMA), 0.9757 (5-DMA), 0.9790 (21-EMA)
Recommendation: Good to go short on break below cloud base, SL: 0.9750, TP: 0.9626/ 0.96/ 0.9580
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -83.3162 (Bearish), while Hourly CAD Spot Index was at 89.43 (Bullish) at 1045 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
