• FxWirePro: AUD/CAD finds strong support at 0.94 handle, good to go short on break below

    Source: FxWire Pro - Technicals / 03 May 2019 03:48:39   America/New_York

    AUD/CAD chart - Trading View 

    Fundamental View:
    - Aussie dampened following the release of the weak Australia building permits data.
    - Australia Building Permits fell 15.5% in March, almost reversing the 19.1% rise seen in February. The markets were expecting a drop of 14%.
    - Weaker-than-expected data will likely strengthen the dovish RBA expectations, raising probability of a rate cut on Tuesday

    Technical Analysis:
    - Price action has fallen below cloud and major moving averages
    - Minor recovery attempts capped at 5-DMA and cloud base
    - Volatility rising as evidenced by expanding Bollinger Bands on the daily charts
    - RSI and MACD sharply lower, RSI below 50 showing strength of bearish momentum
    - Strong support seen at trendline support at 0.94, break below eyes 61.8% Fib at 0.9360
    - 5-DMA is immediate resistance at 0.9439, break above cloud negates bearish bias

    Support levels - 0.94 (trendline), 0.9360 (61.8% Fib), 0.9316 (Mar 1 low)
    Resistance levels - 0.9439 (5-DMA), 0.9478 (200-DMA), 0.95

    Recommendation: Stay short on  break below 0.94, SL: 0.9475, TP: 0.9360/ 0.9320

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

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