Forex Strategy: Australian Dollar Sold Against Canadian Counterpart

Ilya Spivak

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.


Forex_Strategy_Australian_Dollar_Sold_Against_Canadian_Counterpart_body_Picture_1.png, Forex Strategy: Australian Dollar Sold Against Canadian Counterpart
Forex_Strategy_Australian_Dollar_Sold_Against_Canadian_Counterpart_body_Picture_1.png, Forex Strategy: Australian Dollar Sold Against Canadian Counterpart

Daily Chart - Created Using FXCM Marketscope 2.0




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


To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak


To be added to Ilya's e-mail distribution list, please CLICK HERE


New to FX? Watch this Video. For live market updates, visit the Real Time News Feed





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.