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A lack of fresh catalysts encouraged end-of-month profit-taking and some dollar weakness.

Will today’s moves translate to a breakout on AUD/USD?

Before we talk setups, take a look at the top headlines that dominated Asian session trading:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Upcoming Potential Catalysts on the Economic Calendar:

  • Germany’s import prices at 7:00 am GMT
  • France’s consumer spending at 7:45 am GMT
  • France’s preliminary CPI at 7:45 am GMT
  • France’s preliminary GDP at 7:45 am GMT

What to Watch: AUD/USD

AUD/USD 1-hour Forex Chart
AUD/USD 1-hour Forex Chart

There were no fresh catalysts during the Asian session so some traders (who probably have dollar-denominated assets) took the opportunity to lock in some gains.

London session trading is light on data releases so we’ll likely see the same market themes in play.

AUD/USD is now knocking on the .7375 handle that lines up with an ascending triangle ceiling on the 1-hour time frame.

If the anti-dollar theme extends to the London and U.S. sessions, then we could see AUD/USD break above its 1-hour triangle.

Before you buy the comdoll like there’s no tomorrow, though, you should know that sellers have defended the .7400 handle before. That means you gotta be careful when placing them long orders!

If the dollar makes a comeback in the next few hours, though, then you should keep an eye on the .7330 and .7280 previous support levels as potential targets.

AUD/USD tends to by about 70 pips on Fridays so make sure to factor that in when computing your entry and stop levels!