AUDCAD: Hold Short as Prices Hit Second Target

DailyFX

Strategy: Short at 1.0405 (avg), Targeting 1.0086

Floating Profit / Loss: +292 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 has now closed below our second target at 1.0184, the 50% Fibonacci expansion, and we will revise the stop-loss lower to be activated on a daily close above 1.0298. The next objective is at 1.0086, the 61% Fib.

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AUDCAD_Hold_Short_as_Prices_Hit_Second_Target_body_Picture_5.png, AUDCAD: Hold Short as Prices Hit Second Target

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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