News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
AUDCAD: Short Trade Triggered on Support Break

AUDCAD: Short Trade Triggered on Support Break

Ilya Spivak, Head Strategist, APAC

Strategy: Short at 1.0619, Targeting 1.0523

AUDCAD followed a break lower from a rising channel carved out since early January with a push through support in the 1.0645-64 region marked by an upward-slowing trend line set from the November 23 low and the October 28 swing high.

Fundamentally, we see a short AUDCAD position as a way to gain exposure to relative Chinese versus US economic growth expectations. Australia and Canada are key commodity suppliers for China and the US respectively. Chinese GDP growth is forecast to slow in 2012 (8.5% vs. 9.2% in 2011) while that of the US is seen accelerating over the same period (2.2% vs. 1.7% in 2011).

We will enter short from here, targeting the November 30 swing high at 1.0523 as an initial objective. A stop-loss will be activated on a daily close above 1.0750.

AUDCAD_Short_Trade_Triggered_on_Support_Break_body_audcad.png, AUDCAD: Short Trade Triggered on Support Break

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.