• FxWirePro: AUD/CAD capped below 50% Fibonacci, momentum studies bullish, stay long

    Source: FxWire Pro - Technicals / 19 Jan 2018 03:06:51   Eastern Standard Time

    • AUD/CAD grinds higher after breaking above 200-DMA at 0.9906, bias higher.
       
    • Bank of Canada hiked rates by 25bp to 1.25% as expected, but seemed to be in no hurry to deliver another follow up anytime soon.
       
    • Governor Poloz said that accommodative policy is still needed due to NAFTA risks and that hiking rates too quickly could stall the economy.
       
    • CAD dented by dovish comments from BoC policy makers and weaker oil prices.
       
    • Technical studies for the pair are bullish, RSI and Stochs are biased higher.
       
    • We see +ve DMI dominance and ADX support for current uptrend.
       
    • Price action has shown breakout above channel top at 0.9855, raising scope for further upside. We see weakness only on retrace into channel.

    Support levels - 0.9917 (5-DMA), 0.9906 (200-DMA), 0.9855 (channel top), 0.9834 (20-DMA)

    Resistance levels - 1.00, 1.0052 (61.8% Fib retracement of 1.0345 to 0.9579 fall), 1.0074 (Aug 8 high)

    Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CAD-breaks-200-DMA-at-09906-good-to-go-long-on-close-above-1100926) is progressing well.

    Recommendation: Stay long for targets.

    FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 106.229 (Bullish), while Hourly CAD Spot Index was at -43.0992 (Neutral) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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