Fundie-Tech AUDCAD: Central Bank Divergence Short Opportunity!
Why fundamentals are "Power For You" and combined with technical reasons, we form a clear rationale for an investment opportunity.
Fundamentals:
Central bank monetary policy divergence between the Bank of Canada and R. Bank of Australia
BoC - We anticipate the Bank of Canada to taper once again on October 27, 2021 (next meeting). And, we anticipate that this shall be the the culmination of the end of its tapering year end.
RBA - The RBA will not raise rates in the forgone future and will not reconsider its tapering policy until February 2022.
With this central bank divergence of economies, we have a fundamental backdrop as to where we will look in the direction of our trade.
Technicals:
AUDCAD is testing the falling trendline of resistance again.
MACD is negative
RSI is below 50
*There is no apparent price pattern or sign that the bulls are in control other than yesterday's bullish wide spread candle that almost overrode the day's session before it.
I have entered short; however, just in case, I have extra orders to enter the short in this trade above the current price.
Fundamentals:
Central bank monetary policy divergence between the Bank of Canada and R. Bank of Australia
BoC - We anticipate the Bank of Canada to taper once again on October 27, 2021 (next meeting). And, we anticipate that this shall be the the culmination of the end of its tapering year end.
RBA - The RBA will not raise rates in the forgone future and will not reconsider its tapering policy until February 2022.
With this central bank divergence of economies, we have a fundamental backdrop as to where we will look in the direction of our trade.
Technicals:
AUDCAD is testing the falling trendline of resistance again.
MACD is negative
RSI is below 50
*There is no apparent price pattern or sign that the bulls are in control other than yesterday's bullish wide spread candle that almost overrode the day's session before it.
I have entered short; however, just in case, I have extra orders to enter the short in this trade above the current price.
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