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FxWirePro: AUD/CAD hits new 2-year highs of 1.0177, bias higher

  • AUD/CAD hits new 1-year highs at 1.0177, bias remains higher.
     
  • The pair has broken 1.0157 (double top Oct 19, Sept 27).
     
  • Technical indicators on daily charts are bullishly aligned. 
     
  • CAD remains under pressure following Gov Poloz's comments that the central bank was ‘close to cut rates’ at its meeting last Wednesday.
     
  • Latest CFTC report showed CAD speculative net shorts have climbed to the highest level since late March during the week ended on October 18.
     
  • Major support levels - 1.0113 (5-DMA), 1.0080 (trendline), 1.0056 (20-DMA), 1.0022 (Oct 5th lows)
     
  • Major resistance levels - 1.0203 (2014, Sept 9 high), 1.0235 (2014, Aug 6 high), 1.0242 (2014, June 11 high)

Recommendation: Good to go long on dips around 1.0165, SL: 1.0050, TP: 1.02/ 1.0235/ 1.03/ 1.0350
 

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