- AUD/CAD extends 200-DMA breakout, we see scope for further gains.
- The pair has broken above 100-DMA and is on track to test 61.8% Fib at 0.9979.
- Aussie spikes across the board after the Australian Bureau of Statistics (ABS) reported a better-than-expected Australia first quarter GDP reading.
- The economy expanded 1% q/q in Q1, slightly above the estimate of 0.9 percent, but well above the previous quarter's growth rate of 0.4 percent.
- On the otherside, concerns over oil price declines weigh on CAD.
- Oil prices weakened after reports that the U.S. has asked Saudi Arabia and some other OPEC producers to increase oil production.
- Technical indicators are biased higher, momentum studies are bullish. We see weakness only on retrace below 200-DMA.
- Market focus will remained locked onto the ongoing NAFTA talks and Canadian Unemployment figures on Friday.
Support levels - 0.9856 (nearly converged 5 and 100 DMAs), 0.9819 (200-DMA), 0.98
Resistance levels - 0.9931 (cloud top), 0.9979 (61.8% Fib), 1.00
Recommendation: Good to go long on dips around 0.9890/ 0.99, SL: 0.9855, TP: 0.9930/ 0.9980/ 1.00
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