FxWirePro: 20-DMA at 0.9778 caps upside in AUD/CAD, go long on break above

• AUD/CAD has paused downside shy of major trendline support at 0.9685.
   
• The pair has retraced from fresh 4-week lows at 0.9694 and has broken above 5-DMA at 0.9731.
   
• Upside remains capped at 20-DMA at 0.9778, the pair is currently trading at 0.9765 levels.
   
• Technical studies have turned slightly bullish, RSI is biased higher and Stochs have rolled over from oversold levels.
   
• Break above 20-DMA will see further upside, scope then for test of 23.6% Fib at 0.9833.
   
• On the flipside, we see weakness only on break below major trendline support at 0.9685.

Support levels - 0.9736 (5-DMA), 0.97, 0.9685 (trendline support), 0.9675 (Sept 2017 low), 0.9650 (major trendline support)

Resistance levels - 0.9778 (20-DMA), 0.98, 0.9832 (23.6% Fib and weekly 200-SMA)

Recommendation: Watch out for break above 20-DMA for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 81.0517 (Bullish), while Hourly CAD Spot Index was at -44.1052 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest