Audcadsetup
Long on AUDCAD using Fib and trendlinesUsing only technical analysis, found some confluence between daily trendlines and a Fib retracement @ 61.80% on a daily chart. I believe that price may bounce on the middle trendline targeting the upper channel resistance trendline. Stop loss is placed on the Fib @ 50%. Will however be prepared for price to break the middle trendline, and in that case wait for the next setup in the direction of the uptrend that is the bounce of the lower support trendline.
Long Term Short OpportunitiyThis is another trading opportunity that has caught my attention. I am expecting this pair to drop lower once it completes the last upward leg and if it does not violate the psychological level of 1.02 which coincides with 88.6% Fib level will give us another opportunity to short this pair with an excellent risk to reward profile. However, both currencies are commodity based driven. Australian dollar which derives its majority of the value from iron-ore prices and concurrently Canadian dollar which is dependent on the crude oil prices. While I don't expect a major rebound in crude oil prices anytime soon, I am expecting the Australian dollar to put on a nice rally. The iron ore prices have rebounded from its all-time lows. So, I am expecting this pair to reach 1.02 levels before it falls off. Let's see how this trade plays out.
