In this article, I would like to list three reasons to short the Australian dollar - specifically, against the Canadian dollar (short AUD/CAD).
Reason One: Technical Set-Up
AUDCAD has broken below the lower bound of the ascending channel and is now trading within a descending wedge, which is a bearish pattern. Trend-based Fib-extension analysis indicates that a break below 0.9530 could cause a fall into the 0.9520-0.9470 range. Alternatively, the pair will have to rise above 0.9600 to invalidate the bearish short-term bias. Bearish divergence on MACD (see the chart below) indicates that reversal might