Long Term Short Opportunitiy

This is another trading opportunity that has caught my attention. I am expecting this pair to drop lower once it completes the last upward leg and if it does not violate the psychological level of 1.02 which coincides with 88.6% Fib level will give us another opportunity to short this pair with an excellent risk to reward profile. However, both currencies are commodity based driven. Australian dollar which derives its majority of the value from iron-ore prices and concurrently Canadian dollar which is dependent on the crude oil prices. While I don't expect a major rebound in crude oil prices anytime soon, I am expecting the Australian dollar to put on a nice rally. The iron ore prices have rebounded from its all-time lows. So, I am expecting this pair to reach 1.02 levels before it falls off. Let's see how this trade plays out.