AUDCAD: Look to Add on Bounce

DailyFX

I sold AUDCAD at 1.0441 on August 14 to gain exposure to relative US versus Chinese growth expectations, with the former economy expected to accelerate this year while the latter slows. I added to the position at 1.0370 on August 24 as the down move resumed after a brief rebound. Prices are now showing a Hammer candlestick above support at 0.9955, the May 23 swing low, hinting a bounce may be ahead. I will look to use a correction higher as an opportunity to add to the short trade. A stop-loss will be triggered on a daily close above 1.0272.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

View Comments