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.

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The daily AUD/CAD has recently broken lower through a symmetrical Triangle chart pattern that has now revealed the bearish momentum that the pair has with the Canadian Dollar gaining on the Australian Dollar. The loonie is benefiting from stronger crude oil prices and rate hike expectations.
Chart pattern alert courtesy of Autochartist.

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.

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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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  • Raghee Horner

    The daily AUD/CAD is rallying to the 34 period EMA low on the daily chart which is also overlapping with the 1.0250 major psychological level.