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 stalling below resistance at 1.0258 having mounted another shallow recovery and I will continue to hold short, expecting the larger down trend to resume (with confirmation to be seen on break of support at 1.0183). A stop-loss will be triggered on a close above 1.0283.
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