AUDCAD: Adding Further to Short Position
Strategy: Short at 1.0285 (avg), Targeting 0.9955
Floating Profit / Loss: +241 pips
We sold AUDCAD 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 is now showing a Shooting Star candlestick on a retest of support-turned-resistance at 1.0048, the September 5 low, hinting the move lower is ready to resume. We will add further to the short position here (1.0044), aiming for a soft target at 0.9955. The stop-loss will be activated on a daily close above 1.0089.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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