AUD/CAD chart on Trading View used for analysis
- AUD/CAD extends weakness after rejection at 200-DMA, bias lower.
- Price action hovers at cloud base support at 0.9475, break below to see further weakness.
- Dismal Australian building permits data knocked-off the Aussie dollar across the board.
- The Australian building approvals for December arrived at -8.4% m/m versus 1.8% expected and -9.1% last.
- Technical indicators are biased lower, RSI and Stochs point South.
- Break below cloud eyes 61.8% Fib retracement at 0.9360 ahead of 0.9281 (Jan 3rd low).
- We see bearish invalidation only on breakout above 200-DMA.
Support levels - 0.9475 (cloud base), 0.9360 (61.8% Fib), 0.9281 (Jan 3 low)
Resistance levels - 0.9517 (21-EMA), 0.9567 (200-DMA), 0.9580 (Jan 31 high)
Recommendation: Watch out for break below daily cloud to go short, SL: 0.9520, TP: 0.9360/ 0.93/ 0.9280
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
