FxWirePro: Upside momentum in AUD/CAD builds after breach of 20-DMA, good to go long on dips

Technical Analysis:

• AUD/CAD builds onto upside momentum as pair breaks 20-DMA resistance at 0.9719.
• The pair is extending recovery from 6-month lows of 0.9594 on 2nd Jan.
• Decisive close above 20-DMA to see extension of upside, scope for test of next major resistance by 200-DMA at 0.9821.
• Technical studies are biased higher. RSI and Stochs are at neutral territory, bias higher.

TIME    TREND INDEX    OB/OS INDEX    

1H          Neutral                    Neutral, Bias lower        
4H          Bullish                     Overbought, bias neutral                
1D          Neutral                    Overbought, Bias higher        
1W         Bearish                    Oversold, Bias neutral    

Support levels - 0.9719 (20-DMA), 0.97 (5-DMA), 0.9645 (Jan 6 low), 0.9580 (Trendline)

Resistance levels - 0.9795 (Dec 28 high), 0.98, 0.9821 (200-DMA), 0.9857 (50% Fib)

Recommendation: Good to go long on dips around 0.9720, SL: 0.9650, TP: 0.9755/ 0.9795/ 0.9820

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 63.6868(Neutral), while Hourly CAD Spot Index was at -25.5336 (Neutral) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.