- AUD/CAD halts 5 consecutive days of losses, takes support by double bottom at 0.9851 (Dec 1, Jan 18).
- The pair edged higher to hit 0.9884, but was rejected at session highs, slips lower to currently trade at 0.9868.
- Series of major support levels align as follows on the downside:
Cloud top - 0.9855
Double bottom 0.98512
50-DMA - 0.9844
20-DMA - 0.9838
200-DMA - 0.9826
- Technical studies are bearish, Stochs are biased lower, RSI is below 50 levels and MACD is on verge of a bearish crossover on signal line.
- The pair remains pivotal around 0.9826 levels (200-DMA), break below will accentuate weakness.
- We then see scope for test of 0.9650 levels.
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CAD-breaks-100-DMA-bias-higher-stay-long-495898) has achieved all targets.
Recommendation: We advice wait for break below 200-DMA at 0.9826 to go short.
