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.
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
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.