- AUD/CAD fails to close below 50-DMA, bias turns neutral.
- The pair is holding cloud support at 0.9999, we see weakness only on break below.
- The pair has now broken above 5-DMA at 1.0066, close above will reinforce bullish bias.
- RSI has turned north and follow on with Stochs turn from near oversold levels adds support.
- Aussie buoyed following news of higher-than-expected corporate profits for Q1 2017.
- Business indicators shows Australia's company profits gain 6.0% while business inventories up 1.2% in Q1.
- Further, stronger-than-expected Caixin Chinese services PMI provided an additional boost to the China-proxy Australian Dollar.
- The RBA has a policy meeting scheduled this week and steady rates are expected.
Support levels - 1.0066 (5-DMA), 0.9999 (cloud top), 0.9988 (50-DMA)
Resistance levels - 1.0099 (20-DMA), 1.0165 (May 15 high), 1.02
Recommendation: Watchout for break above20-DMA to go long.
