FxWirePro: AUD/CAD rejected at highs, cloud weighs on upside, good to short rallies

• AUD/CAD rejected at session highs at 0.9926, slips lower to currently trade at 0.9894.
   
• Aussie dented after markets were disappointed as Q2 GDP was in line with forecasts.
   
• Expectations of an upbeat print were built-in following strong current account data released yesterday.
   
• The pair is trading a 'Symmetric Triangle' pattern and is extending decline after rejection at triangle top.
   
• 200-DMA at 1.0005 also caps upside, only decisive break above could see bearish invalidation.
   
• 5 and 20 day MA are sharply biased lower, price action is below daily cloud and major moving averages.
   
• We see scope for test of 78.6% Fib at 0.9794. Violation there could see test of wedge base at 0.9765.

Support levels - 0.9850 (Sept 4 low), 0.9794 (78.6% Fib of 0.9643 to 1.0345 rally), 0.9765 (wedge base)

Resistance levels - 0.9912 (61.8% Fib), 0.9944 (20-DMA), 0.9990 (wedge top)

Recommendation: Stay short below 5-DMA at 0.9888, SL: 0.9944, TP: 0.9850/ 0.98/ 0.9765.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 35.7607 (Neutral), while Hourly CAD Spot Index was at -46.8293 (Neutral) at 0820 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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