- AUD/CAD has edged higher from fresh 6-month lows at 0.9734 hit on Wednesday's trade.
- The pair is showing a bullish divergence on 4 hourly charts which raises scope for some upside.
- Price action is currently hovering around 4H 50-SMA at 0.9847. Next major resistance on the upside is seen at 0.9940 (20-DMA).
- Momentum indicators on daily charts are also showing turn higher. Rollover of Stochs from oversold levels could add further confirmation to bullish bias.
- Breach at 20-DMA and confirmation on Stochs could see test of 200-DMA at 1.0035.
Support levels - 0.9820 (5-DMA), 0.9735 (July 12 low), 0.97
Resistance levels - 0.99, 0.9921 (38.2% Fib retrace of 0.9150 to 1.03975 rally), 0.9939 (20-DMA)
Recommendation: Good to go long on dips around 0.9850, SL: 0.98, TP: 0.99/ 0.9920/ 1.00
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 57.0699 (Neutral), while Hourly CAD Spot Index was at -40.1798 (Neutral) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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