FxWirePro: 'Bearish Doji Star' formation on AUD/CAD raises scope for downside, good to go short on break below 0.9915 (20-DMA)

• AUD/CAD dived to over 0.75% on the day, slips below 5-DMA support at 0.9977.
   
• Aussie slumps across the board on dovish RBA Deputy Governor Debelle's comments.
   
• Debelle said that a rising AUD is complicating the economy's adjustment and is not welcome.
   
• Technical indicators are showing a turn. RSI has fallen below 50 and is biased lower. Stochs are on the verge of a bearish rollover from overbought levels.
   
• We have evidenced a 'Bearish Doji Star' formation on daily charts which adds to the downside bias.
   
• Key support seen at 20-DMA at 0.9915. Break below could see further drag lower.
   
• Key macro news from Canada awaited for further impetus - include CPI and retail sales data releases.
   

Support levels - 0.9915 (20-DMA), 0.99, 0.9879 (23.6% Fib retrace of 1.03458 to 0.97348 fall), 0.9825 (weekly 200-SMA)

Resistance levels - 0.9968 (38.2% Fib retrace of 1.03458 to 0.97348 fall), 0.9976 (5-DMA), 1.0032 (200-DMA)

Call update: After hitting TP1&2, our previous call (http://www.econotimes.com/FxWirePro-AUD-CAD-breaks-major-resistance-at-09955-eyes-200-DMA-at-10033-stay-long-807308) has stopped out.

Recommendation: Go short on decisive break below 20-DMA, SL: 0.9970, TP: 0.99/ 0.9825/ 0.98

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 0.547473 (Neutral), while Hourly CAD Spot Index was at -54.8361 (Neutral) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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