Day two: selling AUD/CAD

Yesterday I looked at shorting AUD/CAD on a closing break of the 2014 uptrend. 

With the pair closing at 1.0211 (on the New York close) I would now look at more prolonged weakness. Certainly momentum is to the downside, with the five- and ten-day moving averages headed lower and in alignment.

On the hourly chart the pair seems a touch oversold, so I would look at short positions on a move back to 1.0225, placing a potential stop loss at 1.0315, targeting the parity mark.

Depending on the trend that develops, I feel the pair could even target 0.9992 – the 38.2% retracement of the year’s rally.

IG Charts

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