AUD/CAD short setup
AUD/CAD is extending grind lower in sloping channel pattern, bias lower.
Aussie dented after dovish RBA's quarterly Statement on Monetary Policy (SOMP.
RBA SOMP showed the central bank concerned about the strength of the Aussie.
RBA revised up outlook for jobs growth, forecasts unemployment rate at 5.5 pct out to June 2019, 5.25 pct by Dec 2019.
Recovery in the pair was capped below 50-DMA which is stiff resistance at 0.9795.
Technical studies are bearish, we see scope for test of 61.8% Fib retrace of 0.91502 to 1.03975 rally at 0.9626. Further weakness could see test of channel base at 0.9535.
We see bearish invalidation only on breakout above 200-DMA at 0.9994.
Support levels - 0.97 (Sept 27 low), 0.9685 (trendline), 0.9626 (61.8% Fib retrace of 0.91502 to 1.03975 rally)
Resistance levels - 0.9756 (5-DMA), 0.9795 (50-DMA), 0.9819 (20-DMA), 0.99 (channel top)
Bias lower, stay short for 0.9675/ 0.9630
Aussie dented after dovish RBA's quarterly Statement on Monetary Policy (SOMP.
RBA SOMP showed the central bank concerned about the strength of the Aussie.
RBA revised up outlook for jobs growth, forecasts unemployment rate at 5.5 pct out to June 2019, 5.25 pct by Dec 2019.
Recovery in the pair was capped below 50-DMA which is stiff resistance at 0.9795.
Technical studies are bearish, we see scope for test of 61.8% Fib retrace of 0.91502 to 1.03975 rally at 0.9626. Further weakness could see test of channel base at 0.9535.
We see bearish invalidation only on breakout above 200-DMA at 0.9994.
Support levels - 0.97 (Sept 27 low), 0.9685 (trendline), 0.9626 (61.8% Fib retrace of 0.91502 to 1.03975 rally)
Resistance levels - 0.9756 (5-DMA), 0.9795 (50-DMA), 0.9819 (20-DMA), 0.99 (channel top)
Bias lower, stay short for 0.9675/ 0.9630
AUD/CAD edges higher from mutli-month lows at 0.9661.