FxWirePro: AUD/CAD breaks 100-DMA at 0.9888, bias higher, stay long

• Upbeat Australia trade & housing data supports the Aussies higher, AUD/CAD up 0.38% as we write.
   
• Australia's trade balance widened to AUD 1,745 million in September vs. AUD 1200 million expected.
   
• Meanwhile, building approvals for September rose 1.5% m/m vs -1.0% expected and 0.4% last.
   
• The pair has broken above daily cloud and 100-DMA at 0.9888, bias remains bullish. Bulls eye 200-DMA at 0.9999.
   
• Technical studies support upside on weekly charts. We see bullish divergence on RSI and Stochs which adds scope for upside.
   
• On the flipside, 20-DMA at 0.9818 is strong support, weakness likely on break below.

Support levels - 0.9888 (100-DMA), 0.9875 (daily cloud), 0.9869 (5-DMA), 0.9833 (23.6% Fib retracement of 1.0345 to 0.9675 fall)

Resistance levels - 0.9931 (38.2% Fib retracement of 1.0345 to 0.9675 fall), 0.9999 (200-DMA), 1.0010 (50% Fib)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-Cloud-caps-upside-in-AUD-CAD-good-to-go-long-on-break-above-09875-979424) has hit TP1.

Recommendation: Bias higher. Hold for further gains.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 154.8(Bullish), while Hourly CAD Spot Index was at -18.6216 (Neutral) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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