AUD/CAD Parity Play (October 23, 2013)
AUD/CAD’s rallies seem to be exhausted already as the pair is in the process of testing the resistance at parity. This is in line with a former support level, which has held last year.
Stochastic just reached the overbought zone but hasn’t crossed down yet which suggests that there’s not enough selling pressure for now. Waiting for the oscillator to start moving lower is a good confirmation that the selloff will resume.
Shorting around 1.0000 with a stop above the 61.8% Fibonacci retracement level or 150 pips would yield a good reward on risk for a position trade all the way back to the previous lows around .9200. Locking in gains midway around .9500 would be an excellent way to protect profits.
By Kate Curtis from Trader's Way