FxWirePro: AUD/CAD on track to test trendline support at 0.94, break below to accentuate weakness

AUD/CAD chart on Trading View used for analysis

• AUD/CAD edges higher from 2-week lows at 0.9433, bias bearish.
   
• Canadian doller remains buoyed on NAFTA news. Canadian press reported that Canada is ready to make significant concessions on dairy to secure the NAFTA deal.
   
• Upside remains capped at 5-DMA. Price action below cloud and major moving averages.
   
• Momentum studies are bearish. Stochs and RSI are sharply lower and RSI is below 50 levels.
   
• Next major bear target lies at 0.94 (major trendline support), breach there could accentaute weakness.
   
• On the flipside, 5-DMA is immediate resistance at 0.9498. Break above 21-EMA could see short-term reversal.

Support levels - 0.9417 (Aug 15 low), 0.94 (trendline), 0.9365 (June 2015 low)

Resistance levels - 0.9498 (5-DMA), 0.9563 (21-EMA), 0.96

Recommendation: Good to go short on upticks, SL: 0.95, TP: 0.9420/ 0.94/ 0.9365

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -72.1719 (Neutral), while Hourly CAD Spot Index was at 40.0341 (Neutral) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.