- Disappointing Australia retail trade data dents Aussie, AUD/CAD down 0.58% on the day.
- Australia retail sales have posted their biggest fall in about four-and-a-half years, plunging 0.6 percent in August.
- Downbeat retail sales fuelled concerns over the economic outlook, raising scope for RBA to stay pat for longer.
- AUD/CAD down 0.56% on the day, struggles to hold break above 20-DMA at 0.9779.
- Technical studies are bearish, scope for further downside in the pair.
- The pair is trading in a downward channel, 0.9680 (trendline) is the next major support.
- Violation there could see further weakness. We see bearish invalidation only above 0.9835.
Support levels - 0.9735 (July 12 low), 0.97, 0.9680 (trendline)
Resistance levels - 0.9779 (nearly converged 5&20 DMA), 0.98, 0.9833 (23.6% Fib retrace of 1.03455 to 0.96756 fall)
Recommendation: Good to go short on rallies 0.9760/70, SL: 0.98, TP: 0.9735/ 0.97/ 0.9680
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -66.0818 (Neutral), while Hourly CAD Spot Index was at 113.252 (Bullish) at 1120 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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