FxWirePro: Upbeat GDP Data Buoys Aussie Bulls, AUD/CAD Extends Gains Above 23.6% Fib, Stay Long
- Upbeat Australian GDP report boosts Aussies bulls. Australia’s Q1 GDP q/q came in at +1.1% versus +0.8% expected and from +0.7% prior (revised higher from +0.6%).
- The latest GDP figures added to the recent streak of upbeat fundamentals, including Aus trade, jobs and building approvals data.
- Stabilization in commodities market also lends support to the bullish momentum in the Aussie.
- Caixin PMI pointed to sharpening contraction in May, in contrast to official PMI which indicated slight expansion (came in barely changed at 50.1).
- AUD/CAD extends gains above 23.6% Fib level to hit highs of 95.27, but pared some gains to currently trade at 0.9509.
- The pair is taken a reversal from the potential reversal zone on the Bullish Bat Pattern.
- Bullish invalidation seen only below 0.9150. RSI divergence from price action seen, supports gains.
Our long call (http://www.econotimes.com/FxWirePro-Bullish-Bat-pattern-on-AUD-CAD-dailies-test-of-096-likely-215024) which is progressing.
Target price 1 has been achieved. Recommend holding for further upside.