- AUD/CAD trading a narrow range on the day, bias remains higher.
- Aussie bulls largely ignore upbeat China data dump, which was higher on all categories.
- The pair finds major resistance at 0.9955 (falling trendline), we see upside only on break above.
- Technical studies support upside in the pair, Stochs have rolled over from oversold levels and MACD is on verge of a bullish crossover.
- 5-DMA has turned north and break above 0.9955 with confirmation on MACD should take the pair higher.
- That said, 'Death Cross' (bearish 50&200 DMA crossover) on daily charts keeps scope for downside.
Support levels - 0.9853 (5-DMA), 0.9735 (July 12 low), 0.9645 (Jan 6 low)
Resistance levels - 0.99, 0.9922 (20-DMA), 0.9955 (trendline), 1.0013 (50-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-Bullish-RSI-divergence-on-AUD-CAD-raises-scope-for-upside-good-to-go-long-on-dips-801907) has hit TP1&2.
Recommendation: Book full profits at highs. Watch for break above 0.9955 to go long.
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