AUDCAD: Re-Enter Short on Trend Line Break
Strategy: Short at 1.0335, Targeting 1.0253
We initially sold AUDCAD at 1.0619 as a way to gain exposure to relative Chinese versus US economic growth expectations and booked profits on the position on June 6 at 1.0197 as prices took out falling channel resistance set from mid-March. The corrective upswing now appears to be exhausted as prices confirm a Doji candlestick with a break through rising trend line support set from the May 31 low and we will re-enter short, setting 1.0253 as an initial objective. A stop-loss will be activated on a daily close above 1.0401.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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