- AUD/CAD is trading at 0.99 levels, largely unchanged on the day after hitting day's high at 0.9918 and low at 0.9881.
- The pair has held strong support at 200-DMA at 0.9871 and we see weakness only on break below.
- Technical studies are supporting downside. RSI and Stochs are biased lower and we see -ve DMI dominance.
- That said, occurrence of two back to back spinning tops at lows raises cause for caution.
- The pair has broken below channel base and retrace into rising channel would invalidate bearish bias.
- On the flipside, decisive break below 200-DMA will see test of next major support at 61.8% Fib at 0.9832.
Support levels - 0.9871 (200-DMA), 0.9832 (61.8% Fib), 0.9782 (Feb 9 low)
Resistance levels - 0.9909 (5-DMA), 0.9940 (channel base), 0.9989 (38.2% Fib)
Recommendation: We prefer to wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -34.2344 (Neutral), while Hourly CAD Spot Index was at 95.5966 (Bullish) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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