- AUD/CAD capped below 20-DMA, intraday bias remains lower.
- The pair is currently holding 200-DMA support at 1.0020, break below will see further drag.
- The Canadian dollar supported by BoC positive statements post meeting where it held rates unchanged overnight.
- Brent oil regained bid tone in Asia to trade above the $54.00 mark on speculation the OPEC is set to extend the oil output cut deal by nine months.
- Oil prices up over 1% on the day, keep the CAD buoyed. Investors largely ignored a smaller-than-expected US gasoline stocks draw.
- Momentum studies are bearish, break below 200-DMA will see test of 0.9925 (April 12 low)
Support levels - 1.0020 (200-DMA), 0.9995 (50% Fibo 0.9644 to 1.0345 rise), 0.9925 (April 12 low)
Resistance levels - 1.0072(5-DMA), 1.0129 (20-DMA), 1.0165 (May 18 low)
Recommendation: Good to go short on break below 200-DMA, TP: 0.9995/ 0.9925
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -5.50043 (Neutral), while Hourly CAD Spot Index was at 117.402 (Bullish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
