FxWirePro: AUD/CAD Finds Strong Support by 21-DMA at 0.9446, Weakness Only on Break Below

FxWirePro: AUD/CAD Finds Strong Support by 21-DMA at 0.9446, Weakness Only on Break Below

2 June 2016, 07:51
Roberto Jacobs
0
6

FxWirePro: AUD/CAD Finds Strong Support by 21-DMA at 0.9446, Weakness Only on Break Below

  • AUD/CAD halts upside, slips lower from fresh 3-week highs at 0.9527 hit on Wednesday. 
  • Heavy selling in the Asian equities weigh on the investors’ appetite for risky/ higher-yielding currencies such as the Aussie, hence upside looks limited. 
  • Data was mixed, Australia Retail Sales for April came in at +0.2% m/m versus +0.3 previous, although missed expectations of +0.3%, while April trade deficit decreased to 1.579mln versus expected deficit of 2100mln, as compared to -216mln last. 
  • The pair finds strong support at 0.9446 (21-DMA) and then trendline at 0.9430.  
  • Weakness only on break below 0.9430, pair could then see test of 0.9360 levels. 
  • Resistance on the upside seen at 0.9496 (23.6% Fib) and then 0.9527 (June 1st highs). 
  • Focus remains the US ADP jobs data and EIA crude supplies, which will provide fresh momentum going forward. 


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