FxWirePro: AUD/CAD retraces brief dip below triangle base, good to go short on decisive break below

• AUD/CAD dragged lower after Bank of Canada's surprise decision to hike its policy rate by 25 bps to 1% on Wednesday.
   
• The pair broke below major support at 0.9765 (triangle base) to hit 7-month lows at 0.9675.
   
• The pair then pared losses, retraced brief dip below triangle base to close Wednesday's trade at 0.9778.
   
• Price action on the day is hovering around triangle base support, break below will see further weakness.
   
• Weekly charts support weakness in the pair. Scope for weakness till 0.9643 (Jan 3rd low).
   
• Bearish invalidation only above 20-DMA at 0.9925.

Support levels - 0.9723 (88.6% Fib 0.9643 to 1.0345 rally), 0.9675 (Sept 6th low), 0.9643 (Jan 3 lows)

Resistance levels - 0.9794 (78.6% Fib), 0.9834 (5-DMA), 0.9912 (61.8% Fib)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CAD-rejected-at-highs-cloud-weighs-on-upside-good-to-short-rallies-884296) has hit all targets.

Recommendation: Good to go short on decisive break below triangle base at 0.9765, SL: 0.9835, TP:

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 39.0537 (Neutral), while Hourly CAD Spot Index was at 126.113 (Bullish) at 0510 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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