Extended Target for AUD/CAD Short

Last updated 3/2/2010 11:15 AM EST (GMT -5) 3 Comments
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FX360 Technical Analyst Staff

Technical Analyst, GFT

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Last Updated: 10 min ago

Falling AUD/CAD prices have now thrice tested our initial target of .93.24 this morning to the pip needing just a few more pips to the downside to cover the spread meaning this trade is still technically open. If we do see new lows below 93.24 bid. then we should see further bearish momentum, so stops have been tightened to .9354 in order to lock in some profit while allowing a bit of room for this position run down to the extended target of .9088 in coming days.

Comments (3)

Qin
March 02, 2010 at 11:44 AM ET
Hey, Roger
I read some of your trading recommendation about short AUD/NZD.
What do you think about the pare now?? it will go to 1.35 or turn back to 1.25 as AUD/CAD has started?

Best regards
Qin
rstojsic
March 02, 2010 at 12:50 PM ET
I think the surge up to 1.30 resistance is a bit of a concern but the pattern symmetry and fib convergence is too great to ignore meaning a short is still makes sense but on a shorter time scale....in other words the momentum into current fib/pattern resistance suggests the expected correction/pull back may be short lived meaning more conservative exits and more stringent risk/trade management. I’m actually working on this chart at this very moment!
Qin
March 02, 2010 at 01:27 PM ET
Hello, Roger
Thank you for replying to me.
I am also working on the pare very closely too. I think the pare will turn around in very near term.

AUD has been supported by interest rate hiking, many Japanese traders are very bullish on AUD as carry trade as I know.
But there is still some rumors that Reserve Bank of New Zealand will start hiking interest rate in April. I don't expect Reserve Bank of Australia will hike again next month.
Overall, I don't see the pare will stay above 1.3 sustainably.

Best regards
Qin

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