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AUDCAD: Continues Upside Momentum after bouncing from the 50-day MA

On Friday Canada’s December retail sales suffered their biggest monthly decline in more than four years, plunging 2.0% within growing uncertainty about the Canadian economy.

The Australian economy is stable with household finances improving following the fall in oil prices and recent interest rate cut, so business owners should start planning for growth in 2015.

This week on economic calendar we have from Canada the BoC Governor speech about monetary policy and the consumer price index with a previous number of 1.5%, the consumer price index is often taken as an indicator of inflation. In Australia we have the HIA New Home Sales in January with a previous number of -1.9%.

AUDCAD rallied 90 pips during Friday’s session and closed near the high of the day just below the 200-day moving average. The pair rose 3.62% since the start of the Year 2015 and is in a recovery phase. The stochastic is showing a strong bullish momentum.

Expecting upward move to a daily resistance at 0.9940 on a break above Friday’s high at 0.9840 (scenario 1) or a bounce from a daily key support at 0.98903 could push the pair up to a daily resistance at 0.9940 (scenario 2).