FxWirePro: AUD/CAD rejected at 200-DMA, bearish divergence on Stochs keeps scope for further downside

AUD/CAD chart on Trading View used for analysis

• AUD/CAD is extending downside for the sencond straight session, bias lower.
   
• The pair has been rejected at 200-DMA and we see any upside only on decisivebreak above.
   
• Risk-off action on the Asian equities and a non-eventful RBA minutes keep the Aussie on the back-foot.
   
• Technical indicators are turning bearish. Stochs and RSI are on verge of roll over from overbought levels.
   
• We see bearish divergence on Stochastics on daily charts which raises scope for downside.
   
• Dip till 110-EMA at 0.9494 likely. Further weakness only on break below.

Support levels - 0.9540 (38.2% Fib), 0.9494 (110-EMA), 0.9406 (cloud top)

Resistance levels - 0.9598 (5-DMA), 0.9657 (200-DMA), 0.9674 (50% Fib)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.