FxWirePro: AUD/CAD recovery lacks traction, 21H EMA offers stiff resistance

AUD/CAD chart - Trading View 

Technical Analysis: Bias Bearish

AUD/CAD has shown a bounce off fresh 11-year lows hit on the day as Aussie gains across the board after RBA’s Governor Philip Lowe's speech.

At his speech, Lowe stressed that interest rates are expected to remain at current levels for some years.

He added that he expects “significant job losses” and opened the door to intervening in the FX market.

The pair was trading at 0.8300 at around 10:45 GMT, edging higher from session lows at 0.8065.

However, upside lacks traction and we see scope for resumption of weakness in the pair.

21H EMA (0.8318) is capping upside on the intraday (hourly) charts. Minor upside till 55W EMA (0.8415) likely on break above.

Price action has broken channel base support on the weekly charts and momentum strongly with the bears.

Resumption of weakness will see next major support at 0.8014 (76.4% Fib) ahead of 0.7721 (Feb 2009 low).