FxWirePro: AUD/CAD retraces brief dip below 200-DMA at 1.0014, good to go short on decisive break below

• AUD/CAD bounces off from session lows at 1.0005, to currently trade 0.38% higher at 1.0091 levels.
   
• The pair has retraced brief dip below 200-DMA at 1.0014, decisive break below cloud extend downside.
   
• Upside currently capped at daily cloud base at 1.0092. Bearish invalidation only on close above cloud base.
   
• Oil prices on both sides of the Atlantic remain well bid in Asia after the US EIA report showed the biggest weekly draw in inventories this year.
   
• Oil prices were also buoyed by murmurs that Saudi Arabia is set to cut exports into Asia next month by 7 million barrels.
   
• Strength in oil prices are likely to keep CAD supported. While dovish RBNZ and weaker metals will weight on the commodity bloc.

Support levels - 1.0077 (38.2% Fib of 0.9644 to 1.0345 rise), 1.0044 (100-DMA), 1.00 (50% Fib)

Resistance levels - 1.01, 1.0159 (20-DMA), 1.0162 (50-DMA), 1.0180 (23.6% Fib)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CAD-closes-below-20-DMA-drag-till-200-DMA-at-10012-likely-685430) has hit all targets.

Recommendation: Watch out for decisive break below 200-DMA to go short.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -39.5252 (Neutral), while Hourly CAD Spot Index was at 40.6215 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.