Aud/Cad Looking to Post Fresh 2010 High; Look to Fade

We said that we wouldn’t look to force anything given the expected drying up of liquidity due to the US long holiday weekend, but the price action in this cross is too compelling, with the market potentially looking to break to a fresh 2010 high beyond the current 2010 highs from January at 0.9635. Daily studies are now overbought, and the 78.6% fib retracement off of the major November 2009-June2010 move comes in by the current yearly highs in the 0.9630’s. As such, we do not expect rallies to extend much further, and while we would fully expect to see a break beyond 0.9635 at this point as markets tend to overshoot, any additional gains are not seen sustainable over the shorter term, with the greater likelihood for a bearish resumption. We have place our entry well above the current 2010 highs and projected ATR high to give us the best possible entry should the position trigger. Again, we are not looking to force anything here so will be happy to move on to the next trade if we don’t get a trigger on Friday. SELL @0.9675 FOR AN OPEN OBJECTIVE; STOP 0.9775. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE ON FRIDAY.