With the BOC ziggging & RBA zagging: AUD/CAD
I’m not usually a huge cross-rate fan, but the minutes from last night’s RBA release and the BOC rate statement both being digested there’s reason to look a the AUD/CAD.
Bottom line: Traders are discounting a rate hike in the loonie while simultaneously “baking-into-the-cake” a rate CUT in the aussie.
Now that the daily has broken lower triggering a momentum entry short, there are other time frames that are befitting from the acceleration lower on the daily chart which could by the way also be an early look at a downtrend as the Directional Bias turns bearish.Intraday there is a “four to six o’clock” angle on the 34EMA Wave of the 240-minute chart.
The 240-minute time frame is plotting red GRaB canldes as well as traveling lower in a downtrend. This set ups swing shorts at the 20 period SMA (aggro) and 34 period EMA low (conservative).
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