- AUD/CAD extends gains for the 2nd straight session, trades 0.14% higher on the day at 0.9552.
- Price action continues in a falling Wedge pattern and we see no major signs of reversal.
- However, bullish divergence on Stochs on the daily chart keep scope for upside.
- The pair finds stiff resistance at 21-EMA at 0.9586, we see upside only on break above.
- Rejection at 21-EMA could see dip till Wedge base at 0.94 levels. Violation at Wedge base can accentuate weakness.
- Breakout on the upside at 21-EMA could see test of 50-DMA at 0.9680.
Support levels - 0.9473 (Aug 23/24 low), 0.94 (Wedge base)
Resistance levels - 0.9586 (21-EMA), 0.9680 (50-DMA)
Recommendation: Good to go short on rallies, SL: 0.9590, TP: 0.9473/ 0.94
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -40.4709 (Neutral), while Hourly CAD Spot Index was at -172.241 (Bearish) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
