Staying Short AUDCAD
I 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. I then added to the trade at 1.0370 as prices completed a Bearish Engulfing candlestick pattern following a corrective bounce. The pair has now closed below our second target at 1.0184, the 50% Fibonacci expansion, and I will revise the stop-loss lower to be activated on a daily close above 1.0298. The next objective is at 1.0086, the 61% Fib.
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