FxWirePro: AUD/CAD Hovers Around 61.8% Fib, RBA to Influence Near Term Direction
- AUD/CAD is consolidating last Thursday’s drop, the pair is hovering around 61.8% Fib retrace of the Sept-Dec rally at 0.953
- RBA policy meet scheduled Tuesday which is the major risk event for the pair is likely to influence near term direction
- The RBA statement (Tue) is seen as 50% likely to deliver a rate cut. Either way, a sharp response from the AUD is assured.
- Oil benchmarks faded a tepid bounce and fell back in the red this Monday, extending its retreat from fresh 2016 tops. However, the losses remained capped amid broad based USD weakness.
- Medium-term bias for the pair remains bearish, breaks below 61.8% Fib (0.9539) cloud see weakness resume.
- Downside finds next major support at 0.9434 (Nov 17th lows), decisive break below will see next support at 0.9361 (Oct 16th lows).
- Resistance on the upside aligns at 0.9595 (5-DMA), 0.9625 (trendline support turned resistance) and 0.9692 (200-DMA).
The material has been provided by InstaForex Company - www.instaforex.com