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
- 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
- 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.
© FxWire Pro 2019. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.