FxWirePro: AUD/CAD extends downside after bearish gap open, 100-DMA at 0.9986 in sight

• AUD/CAD's recovery fails at 38.2% Fib retrace of 0.9644 to 1.0333 rally.
   
• Aussie dented after data released earlier today showed Australia home financing dropped in February for the first time in five months.
   
• The pair is now extending downside after bearish gap down open.
   
• Price action dips deeper into daily cloud, scope for test of 100-DMA at 0.9986.
   
• Technical studies point to further downside, bearish RSI divergence adds downside bias.
   
• Stochs and RSI are steeply inclined lower and MACD supports trend lower, bearish invalidation only on close above 5-DMA at 1.0104. 
   
• Next major support lies at 100-DMA at 0.9986, further weakness only on break below.

Support levels - 1.0022 (Feb 24 low), 0.9986 (100-DMA), 0.9949 (cloud base)

Resistance levels - 1.0070 (38.2% Fib), 1.0104 (5-DMA), 1.0170 (23.6% Fib)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Neutral                Neutral       
1D          Bearish               Neutral        
1W         Bearish               Neutral      

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CAD-dips-into-daily-cloud-on-track-to-test-100-DMA-at-09986-633303) has hit target TP1.

Recommendation: Bias lower, stay short.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -134.966 (Bearish), while Hourly CAD Spot Index was at 31.7544 (Neutral) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.