The AUD/CAD failed to test the previous week’s high at 0.9620 and pared the overnight advance as the Bank of Canada raised its benchmark interest rate to 1.00% from 0.75%, and I expect the pair to retrace the advance from the previous month as the RSI falls back from overbought territory. I will try to test the waters on the AUD/CAD as the recent rally fails to test the yearly high at 0.9631, and we may see a corrective retracement unfold in the days ahead as the Reserve Bank of Australia maintains a neutral outlook for future policy. As a result, I will look to short the aussie-loonie at the 10-Day SMA at 0.9502, and will look for a test of the 8/4 high at 0.9377, with the stop at the previous day’s high of 0.9557. Meanwhile, I got stopped out of the short GBP/USD trade from the previous week with a small profit after I tightened the stop down to the 200-Day SMA at 1.5414, and I may look to fade the rally to 1.5493 following the Bank of England rate decision tomorrow as I expect the central bank to refrain from releasing a policy statement.
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