GBP/AUD may be set to move with the latest employment data from the U.K. hitting the London trading session.
Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at a bearish turn in EUR/USD, so be sure to check that out to see if there is still a potential play!
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Fresh Market Headlines & Economic Data:
Upcoming Potential Catalysts on the Economic Calendar
Australia House Price Index at 1:30 am GMT (June 15)
Germany Inflation Rate at 6:00 am GMT (June 15)
U.K. Claimant Count Change, Unemployment Rate at 6:00 am GMT (June 15)
France Inflation Rate at 6:45 am GMT (June 15)
Italy Inflation Rate at 8:00 am GMT (June 15)
Euro Area Balance of Trade at 9:00 am GMT (June 15)
Bank of England Governor Bailey Speech at 12:15 pm GMT (June 15)
What to Watch: GBP/AUD
On the one-hour chart above of GBP/AUD, we can see text book range bound behavior, with support strongly holding between 1.8200 – 1.8250, while the bears seem to take back the market around 1.8350 – 1.8400.
With the overall trend since the start of 2021 currently in favor of the bulls at the moment, odds are looking pretty good that 1.8200 will continue to hold as support in the short-to-medium term, especially if the upcoming economic data falls inline with the price action.
Coming soon we’ve got the latest employment data from the U.K., which could likely spark short-term volatility for the British pound. And if that number comes in better-than-expected, we’ll be on the look out for a retest of the 1.8200 and bullish reversal patterns for a potential short-term long swing position to target the top of the range.
If the U.K. unemployment data unexpectedly disappoints, we could see a strong short-term reaction, making a break below the 1.8200 handle a likely signal to draw in technical bears and momentum players. In that scenario, we may consider a swing short position as that could be the start of a downside break, especially if we see surprise bullish data from the Australia housing prices update and/or the latest monetary policy meeting minutes from the most recent Reserve Bank of Australia meeting.