- AUD/CAD fails to hold and extend breakout above channel top, slips lower to currently trade at 1.0027 levels.
- The pair is trading 0.14% lower on the day, extending downside for 5th consecutive session.
- Price action has slipped below 20-DMA support at 1.0047 and is on track to test next major support at 0.9989 (38.2% Fib).
- Technical studies are supporting downside. RSI and Stochs have rolled over from overbought levels and we see -ve DMI crossover.
- Break below 38.2% Fib will take the pair lower to test channel base at 0.9920.
- On the flipside, we see strong resistance at 1.0086 (converged 5-DMA and 23.6% Fib). Break above could see minor upside.
Support levels - 1.0007 (Mar 9 low), 0.9989 (38.2% Fib), 0.9920 (channel base)
Resistance levels - 1.0047 (20-DMA), 1.0086 (5-DMA and 23.6% Fib), 1.0136 (Mar 7 high)
Recommendation: Good to go short on rallies around 1.0035/45, SL: 1.0090, TP: 0.9990/ 0.9920.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -79.0377 (Bearish), while Hourly CAD Spot Index was at 58.8494 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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