FxWirePro: AUD/CAD trades shy of 200-DMA, bearish divergence dents scope for further upside

AUD/CAD chart on Trading View used for analysis

• AUD/CAD extends gains, trades 0.24% higher at 0.9627 at the time of writing.
   
• Price action is extending gains for the 4th straight session, trades shy of 200-DMA at 0.9647.
   
• Technical indicators support further gains. Stochs and RSI are biased higher, momentum bullish.
   
• The pair is in a near-term bull trend and breakout at 200-DMA could see further upside.
   
• That said, we evidence a bearish divergence on Stochs which dents scope for upside.
   
• We need a breakout at 200-DMA to see further gains. Scope then for test of 61.8% Fib at 0.98.
   
• On the flipside, rejection at 200-DMA could see test of 110-EMA. Violation there to see bullish invalidation.

Support levels - 0.9587 (5-DMA), 0.9539 (38.2% Fib), 0.9523 (Nov 23 low) 

Resistance levels - 0.9647 (200-DMA), 0.9664 (Nov 21 high), 0.97

Recommendation: Watchout for break above 200-DMA to go long.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.