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The U.S. markets are out today and there aren’t tons of top-tier reports heading our way, but that doesn’t mean we won’t see volatility!

Today I’m taking a look at AUD/CAD’s make-or-break situation on the 1-hour chart.

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Business NZ services index jumped from 52.2 to 55.2 in May

PBoC keeps corporate and household loan rates steady in June

Rightmove: UK property prices rise by least since January

DeFi platform Solana votes to control whale account in bid to avoid liquidation ‘chaos’

Asia shares turn lower, no dodging recession risks

Upcoming Potential Catalysts on the Forex Economic Calendar:

U.S. markets out on bank holiday
ECB President Lagarde to testify before the European Parliament at 1:00 pm GMT
FOMC member Bullard to talk inflation and interest rates at 4:45 pm GMT
RBA Gov. Lowe to talk monetary policy at 12:00 am GMT (June 21)
RBA’s meeting minutes at 1:30 am GMT (June 21)

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: AUD/CAD

AUD/CAD 1-hour Forex Chart

AUD/CAD 1-hour Forex Chart

Is it me, or is AUD/CAD forming a potential Head and Shoulders pattern on the 1-hour chart?

There aren’t a lot of top-tier economic reports scheduled in the next trading sessions, but from what we’ve seen in Asian session trading, traders could go back to pricing in China’s COVID and growth concerns.

On the other side of the trade, crude oil prices are slowly getting back up again after a sharp decline last week.

RBA’s meeting minutes scheduled just after the U.S. session might make or break AUD/CAD’s chart pattern.

If the Reserve Bank of Australia (RBA) is penciling in a tighter or more aggressive interest rate hike schedule, then AUD/CAD could maintain its upswing and retest previous inflection points like .91000 or .9150.

If oil prices jump back up to last week’s highs, though, or if traders are unimpressed with RBA’s tightening plans, then AUD/CAD could turn lower from .9050 and head for the .9000 psychological handle near the Head and Shoulders “neckline” and the 100 and 200 SMAs on the 1-hour time frame.