Technical Analysis:
- AUD/CAD builds onto upside momentum as pair breaks 20-DMA resistance at 0.9719.
- The pair is extending recovery from 6-month lows of 0.9594 on 2nd Jan.
- Decisive close above 20-DMA to see extension of upside, scope for test of next major resistance by 200-DMA at 0.9821.
- Technical studies are biased higher. RSI and Stochs are at neutral territory, bias higher.
TIME TREND INDEX OB/OS INDEX
1H Neutral Neutral, Bias lower
4H Bullish Overbought, bias neutral
1D Neutral Overbought, Bias higher
1W Bearish Oversold, Bias neutral
Support levels - 0.9719 (20-DMA), 0.97 (5-DMA), 0.9645 (Jan 6 low), 0.9580 (Trendline)
Resistance levels - 0.9795 (Dec 28 high), 0.98, 0.9821 (200-DMA), 0.9857 (50% Fib)
Recommendation: Good to go long on dips around 0.9720, SL: 0.9650, TP: 0.9755/ 0.9795/ 0.9820
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 63.6868(Neutral), while Hourly CAD Spot Index was at -25.5336 (Neutral) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
