FxWirePro: AUD/CAD hovers around 61.8% Fib, RBA to influence near term direction
AUDCAD is consolidating last Thursday’s drop, the pair is hovering around 61.8% Fib retrace of the Sept-Dec rally at 0.9539. RBA policy meet scheduled Tuesday which is the major risk event for the pair is likely to influ…
AUDCAD is consolidating last Thursday’s drop, the pair is hovering around 61.8% Fib retrace of the Sept-Dec rally at 0.9539.
RBA policy meet scheduled Tuesday which is the major risk event for the pair is likely to influence near term direction.
The RBA statement (Tue) is seen as 50% likely to deliver a rate cut. Either way, a sharp response from the AUD is assured.
Oil benchmarks faded a tepid bounce and fell back in the red this Monday, extending its retreat from fresh 2016 tops. However, the losses remained capped amid broad based USD weakness.
Medium-term bias for the pair remains bearish, breaks below 61.8% Fib (0.9539) cloud see weakness resume.
Downside finds next major support at 0.9434 (Nov 17th lows), decisive break below will see next support at 0.9361 (Oct 16th lows).
Resistance on the upside aligns at 0.9595 (5-DMA), 0.9625 (trendline support turned resistance) and 0.9692 (200-DMA).
