AUD/CAD capped below 20-DMA, good to short rallies
AUD/CAD rejected at 20-DMA on 28th Dec trade, extends slide lower.
We see a decisive close below 5-DMA on Friday.
The pair is on track to test trendline support at 0.9630.
Violation at trendline support (0.9630) could see drag upto 0.9554 (78.6% Fib of 0.93239 to 1.03975 rally).
Momentum studies are bearish, bearish invalidation only above 20-DMA at 0.9767.
Support levels - 0.9646 (July 5 low), 0.9630 (trendline), 0.9554 (78.6% Fib of 0.93239 to 1.03975 rally)
Resistance levels - 0.97, 0.9712 (5-DMA), 0.9734 (61.8% Fib of 0.93239 to 1.03975 rally), 0.9767 (20-DMA)
Good to go short on rallies around 0.9680/90, SL: 0.9770, TP: 0.9630/ 0.96/ 0.9555
We see a decisive close below 5-DMA on Friday.
The pair is on track to test trendline support at 0.9630.
Violation at trendline support (0.9630) could see drag upto 0.9554 (78.6% Fib of 0.93239 to 1.03975 rally).
Momentum studies are bearish, bearish invalidation only above 20-DMA at 0.9767.
Support levels - 0.9646 (July 5 low), 0.9630 (trendline), 0.9554 (78.6% Fib of 0.93239 to 1.03975 rally)
Resistance levels - 0.97, 0.9712 (5-DMA), 0.9734 (61.8% Fib of 0.93239 to 1.03975 rally), 0.9767 (20-DMA)
Good to go short on rallies around 0.9680/90, SL: 0.9770, TP: 0.9630/ 0.96/ 0.9555
Comment:
TP1&2 hit