AUDCAD: Continue to Hold Short
I sold AUDCAD at 1.0441 on August 14 to gain exposure to relative US versus Chinese growth expectations, with the former economy expected to accelerate this year while the latter slows. I added to the position at 1.0370 on August 24 as the down move resumed after a brief rebound. Prices have now taken out support at 1.0062, the 38.2% Fibonacci expansion, and the next downside objective lines up at the 50% level (0.9998). A stop-loss will be activated on a daily close above 1.0272.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.