- AUD/CAD breaks below 1.00 handle, extends weakness below 20-DMA.
- The pair is trading 0.28% lower on the day, extending downside for 6th consecutive session.
- The pair closed below 20-DMA support on Wednesday's trade and is on track to test channel base at 0.9925.
- Technical studies are supporting downside. RSI and Stochs have rolled over from overbought levels and we see -ve DMI crossover.
- Price is currently hovering around major support at 0.9989 (38.2% Fib). Break below will see further weakness. Scope then for test of channel base at 0.9925.
- On the flipside, we see strong resistance at 1.0048 (converged 5 and 20 DMAs). Break above could see minor upside.
Support levels - 0.9989 (38.2% Fib), 0.9925 (channel base), 0.9911 (50% Fib)
Resistance levels - 1.0048 (converged 5&20-DMA), 1.0086 (23.6% Fib), 1.0136 (Mar 7 high)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CAD-breaks-below-20-DMA-at-10047-good-to-go-short-on-rallies-1213636) has hit TP1.
Recommendation: Book partial profits, trail stop loss to 1.0050, hold for further downside.
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