AUDCAD: Staying Short as Prices Hit First Target

DailyFX

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 have now 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.

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AUDCAD_Staying_Short_as_Prices_Hit_First_Target_body_Picture_5.png, AUDCAD: Staying Short as Prices Hit First Target

Daily Chart - Created Using FXCM Marketscope 2.0

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

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