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Currencies AUD Top Trade Idea For October 2nd, 2014 – AUDCAD

AUDCADDaily

The audcad cross is one of the most difficult to be traded and the usual caveat for trading a cross pair is valid here too: it should not travel that much when compared with majors. That is wrong.

This cross just broke a contracting triangle on the bigger time frame and the b-d trend line is behind us for the moment. This is exactly what this recommendation is about: selling a re-test of the b-d trend line.

This b wave that is represented by the triangle above should be part of a zigzag and therefore the minimum distance of the c wave to follow should be until the end of wave a (which is not visible in this chart). This makes our target modest when compared with the minimum distance price should travel.

Keep in mind that this being a cross, it moves only based on the differences the two majors it represents: audusd and usdcad. Usually, crosses move when majors are consolidating, like for example in a contracting triangle, and both majors are making a different leg of the triangle, both of them in the same direction. And the cross accelerates.

It remains to be seen if that is going to be the case here as well, but we like selling a bounce in the 0.9850-0.99 with 1.0150 stop loss and 0.9500 area for taking profits.

About Mircea Vasiu

capital properties fxMircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.

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