AUD/CAD short setup
'Bearish Doji Star' formation on AUD/CAD raises scope for downside, good to go short on break below 0.9915 (20-DMA)
AUD/CAD dived to over 0.75% on the day, slips below 5-DMA support at 0.9977.
Aussie slumps across the board on dovish RBA Deputy Governor Debelle's comments.
Debelle said that a rising AUD is complicating the economy's adjustment and is not welcome.
Technical indicators are showing a turn. RSI has fallen below 50 and is biased lower. Stochs are on he verge of a bearish rollover from overbought levels.
We have evidenced a 'Bearish Doji Star' formation on daily charts which adds to the downside bias.
Key support seen at 20-DMA at 0.9915. Break below could see further drag lower.
Key macro news from Canada awaited for further impetus - include CPI and retail sales data releases.
Support levels - 0.9915 (20-DMA), 0.99, 0.9879 (23.6% Fib retrace of 1.03458 to 0.97348 fall), 0.9825 (weekly 200-SMA)
Resistance levels - 0.9968 (38.2% Fib retrace of 1.03458 to 0.97348 fall), 0.9976 (5-DMA), 1.0032 (200-DMA)
Go short on decisive break below 20-DMA, SL: 0.9970, TP: 0.99/ 0.9825/ 0.98
AUD/CAD dived to over 0.75% on the day, slips below 5-DMA support at 0.9977.
Aussie slumps across the board on dovish RBA Deputy Governor Debelle's comments.
Debelle said that a rising AUD is complicating the economy's adjustment and is not welcome.
Technical indicators are showing a turn. RSI has fallen below 50 and is biased lower. Stochs are on he verge of a bearish rollover from overbought levels.
We have evidenced a 'Bearish Doji Star' formation on daily charts which adds to the downside bias.
Key support seen at 20-DMA at 0.9915. Break below could see further drag lower.
Key macro news from Canada awaited for further impetus - include CPI and retail sales data releases.
Support levels - 0.9915 (20-DMA), 0.99, 0.9879 (23.6% Fib retrace of 1.03458 to 0.97348 fall), 0.9825 (weekly 200-SMA)
Resistance levels - 0.9968 (38.2% Fib retrace of 1.03458 to 0.97348 fall), 0.9976 (5-DMA), 1.0032 (200-DMA)
Go short on decisive break below 20-DMA, SL: 0.9970, TP: 0.99/ 0.9825/ 0.98
The pair has shown a break below 20-DMA which was strong support.
Australia CPI data miss and dovish comments from RBA's Lowe dent Aussie, supporting downside in the pair.
We stand by our short call. Bias lower. Stay short.