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FxWirePro: AUD/CAD breaks strong trendline support, eyes 0.91, stay short

AUD/CAD chart - Trading View 

AUD/CAD is extending weakness for the 3rd straight week, bias is bearish.

Aussie under pressure on dovish RBA minutes. However, falling oil prices keep CAD depressed, may cushion downside.

RBA June 4 monetary policy meeting's minutes showed the bank's readiness  to ease further in the coming months.

The pair has broken strong trendline support at 0.9215, opening up further downside.

Technical indicators support downside. Stochs and RSI are sharply lower. 

Price action is well below cloud and major moving averages. Volatility is on the rise.

Scope for dip till 0.91 (Oct 4th lows). Breach below 0.91 handle could plummet prices further.

5-DMA is immediate resistance at 0.9210. Bearish invalidation only above 55-EMA.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CAD-Trade-Idea-1547740) has hit TP1.

Recommendation: Book partial profits at lows. Hold for further downside.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

By Anupama Grandhi
  • Market Data
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