Sell the AUDCAD at 1.0288
Fundamental Justification: Australia rate cut. Canada outperforming on the back of stronger US
Target: 1.0050
Stop:1.0410
Reward: 233 pips
Risk: 122 pips
Reward/Risk: 1.90 : 1
What does the technical picture look like?
- Price below 200 day MA (1.0397). The stop at 1.0410 would imply a move above this level would turn the bias to bullish Longer term. If the price extends above that level, I would concur,
- I would look for targets along the way to be breached. As long as the levels can be breached, the trend remains in tact. The targets are outlined in the chart above.
Looking at the hourly chart,
- the price is testing a key support area at the 1.0270 level. Market is stalling at the level curently. As a result, here may a technical rebound
- A break below it opens the door for the move to the next target at the December low at 1.0253.
- If the support holds, intraday traders can look for the 1.0309 area to hold topside resistance. This level was a floor tested 3 times before breaking lower today. Shorter term traders who do not like risking to 1.0410 might look for this area as a closer stop on a sell. Then reevaluate.
