FxWirePro: AUD/CAD on track to test 78.6% Fib at 0.9551, good to short rallies

• AUD/CAD extends drag lower as CAD remains supported by rising oil prices.
   
• Oil futures on NYMEX extended its winning streak and built on previous gains after the bulls were bolstered by a surprising drawdown in the US crude stockpiles.
   
• AUD/CAD price action below major moving averages, extends slide along 5-DMA.
   
• The pair has slipped below 61.8% Fib and daily candles are showing long upper wicks which shows pressure at highs.
   
• We see scope for test of 78.6% Fib at 0.9551, bearish invalidation only above 200-DMA at 0.9837.
   
• Support levels - 0.9682 (Dec 20 low), 0.96, 0.9578 (June 30 low), 0.9551 (78.6% Fib)
   
• Resistance levels - 0.9732 (5-DMA & 61.8% Fib), 0.9765 (trendline), 0.98, 0.9837 (200-DMA)
   

Recommendation: We would recommend going short on rallies around 0.9720, SL: 0.98, TP: 0.9685/0.96/0.9580/0.9550
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FxWirePro's Hourly AUD Spot Index was at -122.193 (Highly Bearish), while Hourly CAD Spot Index was at 71.3749 (Bullish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.