AUD/CAD closed above 200-DMA on Wednesday's trade, scope for further upside.
Bank of Canada hiked rates by 25bp to 1.25%, inline with market expectations.
In a statement that followed, the Bank noted higher rates will be needed over time but there’s no rush to deliver another follow up anytime soon.
Governor Poloz said that accommodative policy is still needed due to NAFTA risks and that hiking rates too quickly could stall the economy.
Dovish comments weighed on the loonie, AUD/CAD spiked to hit highs of 0.9983 before paring gains to close at 0.9909 levels.
Technical studies are bullish, RSI and Stochs are biased higher. We see +ve DMI dominance and ADX support for current uptrend.
Price action has shown breakout above channel top at 0.9855, raising scope for further upside. We see weakness only on retrace into channel.
Support levels - 0.9906 (200-DMA), 0.9892 (5-DMA), 0.9855 (channel top), 0.9826 (20-DMA)
Resistance levels - 1.00, 1.0052 (61.8% Fib retracement of 1.0345 to 0.9579 fall), 1.0074 (Aug 8 high)
Stay long for 1.00/ 1.0052/ 1.0074
Bank of Canada hiked rates by 25bp to 1.25%, inline with market expectations.
In a statement that followed, the Bank noted higher rates will be needed over time but there’s no rush to deliver another follow up anytime soon.
Governor Poloz said that accommodative policy is still needed due to NAFTA risks and that hiking rates too quickly could stall the economy.
Dovish comments weighed on the loonie, AUD/CAD spiked to hit highs of 0.9983 before paring gains to close at 0.9909 levels.
Technical studies are bullish, RSI and Stochs are biased higher. We see +ve DMI dominance and ADX support for current uptrend.
Price action has shown breakout above channel top at 0.9855, raising scope for further upside. We see weakness only on retrace into channel.
Support levels - 0.9906 (200-DMA), 0.9892 (5-DMA), 0.9855 (channel top), 0.9826 (20-DMA)
Resistance levels - 1.00, 1.0052 (61.8% Fib retracement of 1.0345 to 0.9579 fall), 1.0074 (Aug 8 high)
Stay long for 1.00/ 1.0052/ 1.0074
