- AUD/CAD finds major resistance at 1.0225, only break above could see further upside.
- The pair is hovering around 5-DMA close below will add to the bearish bias.
- Bearish divergence on RSI adds the possibility for downside in the pair.
- Break below 20-DMA currently at 1.0127will confirm bearishness. Scope then for test of 100-DMA at 0.9984.
- Australia unemployment report due Thursday, 16th March will be the main driver for the pair.
- Focus also on oil price movements. U.S. oil which has slipped below $48 mark on Monday keeps downside pressure on CAD.
- Violation at 100-DMA finds next major support at daily cloud by 0.9925.
Support levels - 1.0127 (20-DMA), 1.010 (23.6% Fib retrace of 0.96439 to 1.02537 rally), 0.9985 (100-DMA)
Resistance levels - 1.0215 (Mar 7 high), 1.0225 (trendline), 1.0236 (78.6% Fib), 1.0253 (March 1 high)
TIME TREND INDEX OB/OS INDEX
1H Bearish Overbought
4H Bearish Neutral
1D Neutral Neutral
1W Bullish Neutral
Recommendation: Good to short close below 20-DMA, target 1.010/ 0.9985
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 78.9997(Slightly bullish), while Hourly CAD Spot Index was at 81.3099 (Slightly bullish) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
