AUD/CAD chart on Trading View used for analysis
- AUD/CAD is trading at 0.9395 at 0630 GMT, up 0.40% at the time of writing.
- Surge in the commodity complex along with rising equities which suggest increased risk-on keep antipodeans supported.
- The Aussie is tracking copper prices higher. Copper, one of Australia's top exports, has jumped to the highest since July on US-China trade optimism.
- Technical indicators for the pair however remains bearish, upside capped at 5-DMA at 0.9406.
- Price action has been rejected at 55-EMA and break below 61.8% Fib to see dip till 78.6% Fib at 0.9248.
- Retrace above 55-EMA could see test of 200-DMA. Bearish invalidation only above 200-DMA.
Support levels - 0.9360 (61.8% Fib), 0.9281 (Jan 3 low), 0.9248 (78.6% Fib)
Resistance levels - 0.9406 (5-DMA), 0.9438 (21-EMA), 0.9519 (38.2% Fib)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-CAD-hovers-around-major-trendline-support-at-14925-weakness-only-on-break-below-1500718) is progressing well.
Recommendation: Bias lower, stay short for targets.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
