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Short AUDCAD following Pipeline news

Market Analysis

AUDCAD, Daily              

President Donald Trump signed executive orders on Tuesday (January 24) to restart the very controversial Keystone XL and Dakota Access pipelines. These routes were designed to make oil trapped in the middle of North America more accessible to consumers, but they both ran into fierce opposition (from environmental activists, Native American groups and Democrats and ultimately were denied permits under former President Barack Obama.

The Loonie was the main beneficiary immediately as it rallied strongly Tuesday and yesterday (Wednesday). Of all the CAD crosses the most interesting is the AUDCAD. The AUD had also suffered from a poor CPI number on Wednesday and a short position was entered on the close yesterday at 0.9897.  The pipeline announcements were not a surprise; the AUDCAD had peaked on Monday at 1.0090. Tuesdays news and close took the pair under the 23.6 Fib level and Wednesdays close took it below the 38.2 level and my entry.  The RSI rolled over significantly and the parabolic SAR confirmed the move yesterday too.  Target 1 is beyond a significant congestion area of the 20, 50 and 200 DMA, a little over the 14 DATR and at the 61.8 Fibonacci level at 0.9788.  Target 2 is further down at the psychological 0.9700 and previous congestion area.

https://analysis.hotforex.com/ has had a 100% start to 2017 with five trades achieving both Targets 1 and 2 and a three trades hitting target 1 for a total net gain of 1632 pips.

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Stuart Cowell

Senior Market Analyst

HotForex

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