AUDCAD: Staying Short as Prices Hit First Target
Strategy: Short at 1.0405 (avg), Targeting 1.0184
Floating Profit / Loss: +146 pips
We sold AUDUCAD 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. We 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 initial target at 1.0281, the 38.2% Fibonacci expansion, and we will now revise the stop-loss lower to be activated on a daily close above 1.0433. The next objective lines up at 1.0184, the 50% Fib.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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