- AUD/CAD retrace from multi-week highs at 1.0136 holds above 1.00 handle.
- The pair has resumed upside and is trading 0.27% higher on the day.
- Price action has retraced dip below 5-DMA and is currently holding above 16.8% Fib at 1.0052.
- Technical indicators are biased higher. RSI nicely converging with price action and shows strength at 63 levels.
- Bollinger bands are widening and Stochs are biased higher. Momentum is bullish.
- Next major resistance lies at 78.6% Fib at 1.0181. Break above 78.6% Fib raises scope for test of 1.0130 (channel top).
- Bearish divergence on Stochs raises need for caution. That said, breakout at channel top could see further bullishness.
- On the downside, 5-DMA at 1.0069 is immediate support. Break below 20-DMA support at 0.9977 invalidates bullish bias.
Support levels - 1.0069 (5-DMA), 1.0052 (61.8% Fib retrace of 1.0345 to 0.9579 fall), 0.9977 (20-DMA)
Resistance levels - 1.0108 (upper BB), 1.0181 (78.6% Fib), 1.02
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