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FxWirePro: AUD/CAD slips below 200-DMA, focus on BoC for further impetus

AUD/CAD chart - Trading View 

  • AUD/CAD edges higher from 3-week lows of 0.9449 hit earlier today. Aussie dented after poor Australia inflation data.
     
  • Data released earlier today showed Australia Q1 consumer price index, rose 0.3 percent quarter-on-quarter, missing the estimated rise of 0.4 percent.
     
  • The pair has broken below 200-DMA and is currently trading at 0.9475 at 0930 GMT, bias is bearish.
     
  • Price action has been capped at 55-W EMA, and pair has retraced with a Doji formation on the weekly charts.
     
  • Technical indicators support further weakness. Scope for test of 0.9395 (trendline support).
     
  • Market focus will remain on the latest Bank of Canada (BoC) monetary policy update, scheduled later today.
     
  • BoC is expected to strike a more cautious tone amid the recent softness in the domestic economy. Any Bullish outcome could buoy the CAD.

Support levels - 0.9433 (Lower BB), 0.9395 (trendline)

Resistance levels - 0.9488 (200-DMA), 0.9532 (5-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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