FxWirePro: AUD/CAD breaks major trendline support at 0.9685, hits 10-month lows at 0.9653, bias bearish

• AUD/CAD slumps lower to hit 10-month lows at 0.9653, bias remains bearish.
   
• The pair has broken major trendline support at 0.9685, bears now eye 61.8% Fib retrace of 0.9150 to 1.0397 rally at 0.9626.
   
• Technical studies are heavily bearish. RSI and stochs on weekly charts sharply lower and RSI well below 50 levels.
   
• Price action extends in slopping channel and breach at 61.8% Fibo raises scope for test of channel base at 0.95 levels.
   
• On the flipside, retrace above weekly 5-SMA at 0.9764 to see minor upside. Bearish invalidation only above channel top at 0.9890.

Support levels - 0.9644 (Jan 2017 low), 0.9626 (61.8% Fib retrace of 0.9150 to 1.0397 rally), 0.9597 (Feb 2016 low), 0.95 (channel base).

Resistance levels - 0.9685 (trendline), 0.9705 (5-DMA), 0.9786 (50-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CAD-Trade-Idea-989807) has hit all targets.

Recommendation: Book partial profits at lows. Trail stop loss to 0.97, hold for 0.9645/ 0.9625/ 0.96.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -152.138 (Bearish), while Hourly CAD Spot Index was at -32.2086 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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