- AUD/CAD has seen repeated rejections at major trendline resistance currently at 0.9975.
- Technical indicators still support upside in the pair. But, we see any further upside for the pair only on breakout at trendline.
- That said, bearish divergence on Stochs raises scope for downside in the pair.
- 200-DMA at 0.9875 is major support below 5-DMA at 0.9938. Violation at 200-DMA could see major weakness.
- On the upside, breakout at major trendline resistance could see test of 1.0052 (61.8% Fib retrace of 1.03458 to 0.9579 fall).
Support levels - 0.9939 (5-DMA), 0.9913 (12-EMA), 0.9875 (200-DMA)
Resistance levels - 0.9975 (major trendline), 1.00, 1.0052 (61.8% Fib retrace of 1.03458 to 0.9579 fall)
Recommendation: Watch out for break above major trendline resistance for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 22.7767 (Neutral), while Hourly CAD Spot Index was at -16.8529 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
