Fxwirepro: Aud/cad capped Below 200-Dma, Some Consolidation Likely at Current Levels

  • AUD/CAD upside capped shy of 200-DMA at 0.9820. 
  • Doji formation seen on daily charts in the Asian session.
  • The pair is holding support by 23.6% Fib at 0.9784. We see some weakness on break below.
  • Test of 20-DMA at 0.9718 then likely. We see bearish reversal on break below 20-DMA. 
  • Momentum still with the bulls. RSI in neutral territory, holds above 50 levels.
  • MACD line has shown a bullish crossover over signal line, trend remains higher.
     

Call update: Our previous call (http://www.econotimes.com/FxWirePro-Upside-momentum-in-AUD-CAD-builds-after-breach-of-20-DMA-good-to-go-long-on-dips-480361) has achieved all targets.

Support levels –  0.98, 0.9784 (23.6% Fib of 1.0397 to 0.9595 fall), 0.9747 (5-DMA), 0.9717 (20-DMA) 

Resistance levels – 0.9820 (200-DMA), 0.9892 (50-DMA), 0.9901 (38.2% Fib)

Recommendation: Book full profits at highs. We prefer to wait for clear indication on Technicals.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 111.133 (Highly bullish), while Hourly CAD Spot Index was at -33.3162 (Neutral) at 0550 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

The material has been provided by InstaForex Company – www.instaforex.com

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