FxWirePro: AUD/CAD pauses downside at cloud base support, break below to see further weakness

AUD/CAD chart on Trading View used for analysis

• AUD/CAD trades in tight range, holds support at cloud base.
   
• The pair trades with a bearish bias, break below cloud will see further drag.
   
• Growing prospects of RBA rate cut to keep the Aussie suppressed.
   
• Technical indicators support further weakness. Break below cloud raises scope for test of 61.8% Fib at 0.9360.
   
• 5-DMA is immediate resistance at 0.9497. Decisive breakout above 200-DMA negates bearish bias.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CAD-finds-stiff-resistance-09535-09540-region-good-to-stay-short-on-upticks-1485813) has hit TP1.

Recommendation: Book partial profits at lows. Watch out for break below cloud for further weakness.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.