- AUD/CAD is extending slump for 5th consecutive day, bias lower.
- The pair has broken 200-DMA on Tuesday's trade and is currently holding minor trendline support at 0.9960.
- Break below will see further drag. Technicals support downside, momentum studies are bearish.
- Bank of Canada Governor Stephen Poloz said this week that the central bank could raise interest rates sooner than previously thought.
- The strength in the Canadian dollar is pretty much in line with the narrowing of the US-Canada 10-year yield spread.
Support levels - 0.9960 (trendline), 0.9912 (61.8% Fib of 0.9644 to 1.0345 rise), 0.9875 (trendline)
Resistance levels - 0.9995 (50% Fib), 1.0036 (200-DMA), 1.0066 (5-DMA)
Recommendation: Good to go short on break below 0.9960, SL: 1.00, TP: 0.9915/ 0.9875
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 18.9058 (Neutral), while Hourly CAD Spot Index was at 87.4221 (Bullish) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
