FxWirePro: 'Cup and Saucer Formation' on AUD/CAD dailies, consolidation likely before next leg higher
AUD/CAD upside halts at stiff trendline resistance by 0.9970, break above needed to resume upside. The pair has broken above 78.6% Fib of 1.0054 to 0.9324 fall, as it extends upside along the 'Cup' formation. Aussie unde…
AUD/CAD upside halts at stiff trendline resistance by 0.9970, break above needed to resume upside.
The pair has broken above 78.6% Fib of 1.0054 to 0.9324 fall, as it extends upside along the 'Cup' formation.
Aussie under pressure from weak Australia consumer confidence and Chinese trade data. Somewhat upbeat Australia’s employment report left Aussie bulls largely unimpressed.
Focus now remains on Q2 CPI data on 27th July which is crucial for the RBA and the market.
The pair now finds support on the downside at 0.9817 (23.6% Fib of 0.9324 to 0.9970 rally). Break below will see next support at 0.9723 (38.2% Fib).
We expect consolidation at current levels, before next leg higher. Weakness only below 0.9720 levels.
