- AUD/CAD has broken range trade and price action has slipped into the daily cloud, hit session lows at 0.9788.
- Downside in the pair has found support by cloud base at 0.9787, breaks below will find next support at 0.97 (rising trendline).
- Resistance on the upside is located at 0.9864 (5-DMA) ahead of 0.9884 (cloud top).
- Momentum studies are bearish, 5-DMA bearish crossover on 10-DMA indicates near-term trend is lower.
- Recovery in crude oil prices likely to support the Loonie, while the main data event for the Aussie, CPI and PPI from China marginally missed expectations.
- We had advised a short in the pair from 0.9970/80 levels (http://www.econotimes.com/FxWirePro-AUD-CAD-rejected-at-10008-strong-trendline-resistance-good-to-sell-rallies-188570).
Recommendation: Book partial profits, lower trailing stops to 0.9865, target 0.9710
