Risk vs Risk – Sell AUD/CAD

The AUD/CAD cross is always on my watch list. Both are considered risk or growth related currencies. Both are linked to a major economy – the CAD to America and the AUD to China. While US data is showing a recovery, there are market doubts about growth trends in China. Combined with the charts, there is a case to sell AUD/CAD.

Here’s the daily chart from CMC’s Tracker platform:

AUD/CAD Daily

 From February to May this year, AUD/CAD fell 8 big figures. The retracement to just above the 50% mark appears to be faltering, and I’m looking for resumption of the downtrend. The closing gap in the MACD is also pointing downwards.

More cautious traders may wait for the MACD to cross, and/or trading below Monday’s low point at 1.0278. I’ve seen enough and am looking at this trade:

SELL 250,000 AUD/CAD at market, stop loss above 1.0346, first target 1.0150, second 0.9960

About michaelmccarthycmc

Chief Market Strategist - CMC Markets and Stockbroking Regular on ABC, BBC, Bloomberg, Channel TEN, CNBC, SBS and SKY
This entry was posted in Forex, Trading and tagged , , , , , . Bookmark the permalink.

2 Responses to Risk vs Risk – Sell AUD/CAD

  1. Nice set up and tight stops. Good luck!

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