AUD/CAD chart on Trading View used for analysis
- AUD/CAD has failed to break above 200-W SMA on track to close in the red for the week.
- The pair has been on an uptrend since October and failure to hold above 200-DMA could see more weakness.
- Aussie weakens across the board after unexpected miss in Australia's Trade Balance.
- Australia’s trade surplus narrowed to A$2.3 billion in October from A$2.9 billion the previous month.
- Exports remained static but imports surged, rose 3% following -1% in September while exports were steady at +1%.
- Traders largely ignored positive retail sales which were up 0.3% m/m in Oct versus a +0.2% forecast and accelerating from the +0.1% in Sept.
- Bullish momentum in the pair is intact, breakout at 200-W SMA could propel the pair higher. Next bull target above 200W SMA lies at 61.8% Fib at 0.9808.
- On the flipside, retrace below 200-DMA at 0.9641 could see weakness till 0.9523 (Nov 18 low)
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.