AUDCAD: Adding to Short Position on Bounce
Strategy: Short at 1.0405 (avg), Targeting 1.0281
We re-entered short AUDUCAD at 1.0441 to regain exposure to relative Chinese versus US economic growth expectations, with the North American economy expected to accelerate this year as the East Asian giant slows. Prices have now completed a Bearish Engulfing candlestick pattern following a shallow bounce, hinting the move lower is poised to resume. We will add to the short position here and continue to target the 38.2% Fibonacci expansion at 1.0281 as the initial objective. A stop-loss will be triggered on a daily close above 1.0598.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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