- AUD/CAD is trading in a narrow range in the Asian session today, bias higher.
- The pair hit 1.00 handle on Friday, but was unable to extend gains, closed at 0.9976.
- Momentum studies are bullish, RSI is biased higher. We see scope for further upside.
- Price action has shown breakout above channel top at 0.9855 and is extending 200-DMA breakout.
- Technical indicators on weekly charts are also bullish, breakout at 1.00 handle to see further gains.
- On the flipside, 200-DMA currently at 0.9905 is strong support, bullish invalidation likely on retrace below.
Support levels - 0.9962 (50% Fib retracement of 1.0345 to 0.9579 fall), 0.9937 (5-DMA), 0.9905 (200-DMA)
Resistance levels - 1.00, 1.0052 (61.8% Fib retracement of 1.0345 to 0.9579 fall), 1.0074 (Aug 8 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CAD-breaks-200-DMA-at-09906-good-to-go-long-on-close-above-1100926) has hit TP1.
Recommendation: Book partial profits at highs, watch out for close above 1.00 handle for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 36.7008 (Neutral), while Hourly CAD Spot Index was at -75.9665 (Bearish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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