- AUD/CAD fails to break out of at major trendline resistance at 0.9975 (channel top).
- Aussie dented across the board on the back of a big miss in Australia Q4 capex data.
- Australia's seasonally adjusted capex fell 0.2% q/q in Q4 2017, missing markets expectations for a growth of 0.9 percent.
- The pair has slipped below immediate support at 5-DMA at 0.9937 and is currently hovering around 0.9915 levels.
- Technical indicators are biased higher. But we see upside only on break above 0.9975 (channel top).
- That said, bearish divergence on Stochs keeps scope for downside in the pair.
- 200-DMA at 0.9873 is major support. Violation at 200-DMA could see major weakness.
- On the upside, breakout at channel top could see test of 1.0052 (61.8% Fib retrace of 1.03458 to 0.9579 fall).
Support levels -0.9917 (21-EMA), 0.9873 (200-DMA), 0.9861 (110-EMA)
Resistance levels - 0.9937 (5-DMA), 0.9975 (major trendline), 1.00, 1.0052 (61.8% Fib retrace of 1.03458 to 0.9579 fall)
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
