A surge in oil prices this year has helped make the Canadian dollar one of this year’s best performing major currencies. However, the Canadian Dollar weakened Monday after the latest business outlook survey from the Bank of Canada (BoC) showed weaker inflationary pressures in the first-quarter and slower growth in the months ahead suggesting the BoC at a minimum will leave interest rates on hold for the rest of the year.
On the news, the Canadian dollar fell…right into supply on the AUD/CAD. Lets go to the chart to see the trade set-up I took.
Monthly Chart (Curve Time Frame) – monthly supply is 1.02500 and monthly demand is 0.92500.
Weekly Chart (Trend Time Frame) – the trend is down.
Daily Chart (Entry Time Frame) – the chart suggests to go short at the 4 hr supply at 0.96050 within the daily supply.
Only risked 0.5% of my account.
because I’m already in a NZD/CAD short (risking 2% of account), which is very similar to this AUD/CAD trade.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.