FxWirePro: AUD/CAD hovers around 100-DMA at 0.9797, break below to see further weakness

• The pair has broken major trendline support at 0.9825, is currently struggling to break below strong support at 100-DMA at 0.9797.
   
• Weakness in crude oil prices weighing on the CAD, supporting upside in the pair.
   
• AUD/CAD is trading 0.08% higher on the day around the 0.98 handle, up from session lows at 0.9783.
   
• Technical studies still support downside in the pair. RSI and Stochs are biased lower.
   
• We see -ve DMI dominance and ADX is above 25 levels and rising which supports trend lower.
   
• Below 100-DMA the pair finds next major support at 0.9777 (cloud top). Breach at cloud support will accentuate weakness.
   
• On the flipside, close above 5-DMA will see upside till 200-DMA. Breakout at 200-DMA will negate bearish bias.

Support levels - 0.9797 (100-DMA), 0.9777 (cloud top) 0.9710 (Jan 5 low)

Resistance levels - 0.9838 (5-DMA), 0.9885 (200-DMA), 0.9907(20-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-CAD-holds-200-DMA-support-at-09897-good-to-go-short-on-break-below-1126870) has hit TP1/2.

Recommendation: Book partial profits. Watch for break below 100-DMA for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -67.6301 (Neutral), while Hourly CAD Spot Index was at 0.591943 (Neutral) at 0740 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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