FxWirePro: AUD/CAD breaks channel top, eyes 200-DMA at 0.9942

• AUD/CAD has shown break above slopping channel top at 0.9835, bias higher.
   
• Momentum studies on daily charts are bullish, RSI is strong above 50 levels and gaining traction.
   
• Technical studies on weekly charts also support upside. RSI and Stochs are biased higher and MACD is showing a bullish crossover on signal line.
   
• The pair has edged above 200W SMA at 0.9835, close above on weekly basis could see further gains.
   
• Price action has broken above daily cloud and next bull target lies at 0.9871 (38.2% Fib) ahead of 200-DMA at 0.9942.
   
• We see bullish invalidation if the pair fails to close above 200W SMA.

Support levels - 0.9835 (200W SMA), 0.9814 (100-DMA), 0.9798 (5-DMA)

Resistance levels - 0.9871 (38.2% Fib retrace of 1.03458 to 0.95790 fall), 0.9916 (Nov 1 high), 0.9942 (200-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CAD-upside-capped-by-233-4H-MA-good-to-buy-on-dips-1055954) has hit all targets.

Recommendation: Good to go long on close above daily cloud, SL: 0.9810, TP: 0.9870/ 0.99/ 0.9940.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 119.725 (Bullish), while Hourly CAD Spot Index was at -83.8996 (Bearish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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