FxWirePro: AUD/CAD breaks above 200-DMA, scope for further upside

Chart - Courtesy Trading View 

Spot Analysis:

AUD/CAD was trading 0.15% higher on the day at 0.9228 at around 12:00 GMT.

Previous Week's High/ Low: 0.9163/ 0.9054

Previous Session's High/ Low: 0.9220/ 0.9154

Fundamental Overview:

Australia Q4 Wage Price Index printed at +0.7% quarter on quarter, inline with expectations, while year on year, it was 2.3% vs 2.4% expected. 

Following the data, the odds of a Reserve Bank of Australia rate hike in June dropped below 50%.

Sanctions on Russia were not as bad as feared helped ease the nervousness over the situation, thus improving risk appetite.

Technical Analysis:

- AUD/CAD is extending bullish streak for the 7th straight session

- Price action has broken above 200-DMA

- GMMA indicator shows minor trend has turned bullish 

- The pair is extending gains above daily cloud, Chikou span is biased higher

- Momentum is strongly bullish and volatility is high

Major Support and Resistance Levels:

Support - 0.9205 (200-DMA), Resistance - 0.9245 (55-week EMA)

Summary: AUD/CAD poised for further gains. Watch out for break above 0.9245 for upside continuation.