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AUDCAD: Adding Further to Short Position

By , Currency Strategist
12 October 2012 01:45 GMT

Strategy: Short at 1.0285 (avg), Targeting 0.9955

Floating Profit / Loss: +241 pips

We sold AUDCAD at 1.0441 to regain exposure to relative Chinese versus US economic growth expectations, with the North American economy seen accelerating as the East Asian giant slows. We then added to the trade at 1.0370 as prices completed a Bearish Engulfing candlestick pattern following a corrective bounce. The pair is now showing a Shooting Star candlestick on a retest of support-turned-resistance at 1.0048, the September 5 low, hinting the move lower is ready to resume. We will add further to the short position here (1.0044), aiming for a soft target at 0.9955. The stop-loss will be activated on a daily close above 1.0089.

AUDCAD_Adding_Further_to_Short_Position_body_Picture_5.png, AUDCAD: Adding Further to Short Position

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

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12 October 2012 01:45 GMT