- AUD/CAD hits new 1-year highs at 1.0177, bias remains higher.
- The pair has broken 1.0157 (double top Oct 19, Sept 27).
- Technical indicators on daily charts are bullishly aligned.
- CAD remains under pressure following Gov Poloz's comments that the central bank was ‘close to cut rates’ at its meeting last Wednesday.
- Latest CFTC report showed CAD speculative net shorts have climbed to the highest level since late March during the week ended on October 18.
- Major support levels - 1.0113 (5-DMA), 1.0080 (trendline), 1.0056 (20-DMA), 1.0022 (Oct 5th lows)
- Major resistance levels - 1.0203 (2014, Sept 9 high), 1.0235 (2014, Aug 6 high), 1.0242 (2014, June 11 high)
Recommendation: Good to go long on dips around 1.0165, SL: 1.0050, TP: 1.02/ 1.0235/ 1.03/ 1.0350
