- AUD/CAD fades dips post BoC policy announcement, trades 0.20% higher on the day.
- BoC's rate hike decision and its relatively hawkish tone in the policy statement initially buoyed the Canadian dollar.
- AUD/CAD slumped to lows of 0.9681, but quickly pared losses to close at 0.9748 levels.
- The pair is trading in a 'Symmetric Triangle' pattern and has held support at triangle base at 0.9680.
- We see further weakness only on break below. Scope then for test of 0.9554 (May 10 low).
- On the upside, the pair finds immediate resistance at 5-DMA at 0.9752 ahead of 50-DMA at 0.9754.
- Break above 50-DMA will take the pair higher to 200-DMA at 0.9817. Violation there will see bearish reversal.
Support levels - 0.9716 (23.6% Fib), 0.97, 0.9680 (triangle base)
Resistance levels - 0.9754 (nearly converged 5 and 50 DMA), 0.98, 0.9817 (200-DMA & 38.2% Fib)
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -41.0583 (Neutral), while Hourly CAD Spot Index was at 10.4483 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
