Forex Strategy: Australian Dollar Sold Against Canadian Counterpart
Strategy: Short AUDCAD at 1.0340, Targeting 1.0260
Prices retesting support-turned-resistance at the bottom of a previously broken rising channel having found initial support at 1.0260 marked by the 38.2% Fibonacci retracement. The overall fundamental backdrop appears to favor weakness, with priced-in expectations suggesting the RBA will continue to cut interest rates over the coming year while the BOC remains on hold. The recent bounce has improved risk/reward parameters and we will now enter short, initially aiming for a return to the 1.0260 level. A stop-loss will be triggered on a daily close above 1.0420.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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