FxWirePro: AUD/CAD finds major resistance at 0.9885, good to go long on break above

• AUD/CAD edges lower from session highs at 0.9883, finds stiff resistance at 0.9885 (trendline).
   
• Technical studies support upside, break above 0.9885 raises scope for test of 200-DMA at 1.0003.
   
• Momentum studies are bullish, RSI at 57 and biased higher. Stochs sharply higher.
   
• We see positive DMI dominance and ADX is at 26 and rising, which supports trend higher.
   
• Violation at 200-DMA could see continuation of upside, test of 61.8% Fib at 1.0089.
   
• On the flipside, 20-DMA at 0.9784 is strong support, weakness likely on break below.

Support levels - 0.9833 (converged 5-DMA and 23.6% Fib), 0.98, 0.9784 (20-DMA)

Resistance levels - 0.9885 (trendline), 0.99, 0.9931 (38.2% Fib retracement of 1.0345 to 0.9675 fall), 1.0003 (200-DMA)

Recommendation: Good to go long on decisive break above 0.9885, SL: 0.9830, TP: 0.99/ 0.9930/ 1.00.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -67.928 (Neutral), while Hourly CAD Spot Index was at 31.9172 (Neutral) at 0815 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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