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FxWirePro: AUD/CAD edges above 21-EMA, continuation of bullish momentum to see test of 23.6% Fib at 0.9373

AUD/CAD chart on Trading View used for analysis

  • AUD/CAD trades 0.40% higher on the day at 0.9293 at the time of writing.
     
  • The pair has broken above 21-EMA at 0.9276 and we see scope for further upside.
     
  • Aussie remains buoyed after upbeat unemployment data, which fell to the lowest since 2012.
     
  • The pair is trading in a major bear trend and rejection at 21-EMA could see resumption of downside.
     
  • That said, momentum is with the bulls on daily charts. Stochs and RSI are sharply higher.
     
  • We also see bullish divergence on RSI and Stochs which adds to bullish bias.
     
  • Decisive breakout at 21-EMA could see test of 23.6% Fib at 0.9373.

Support levels - 0.9276 (21-EMA), 0.9260 (5-DMA), 0.9223 (Oct 16 low), 0.9105 (Oct 4 low)

Resistance levels - 0.93, 0.9373 (23.6% Fib), 0.9390 (55-EMA), 0.9442 (cloud base)

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

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