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Got a classic technical pattern on AUD/CAD to checkout ahead of top tier catalysts from both Canada & Australia into the weekend.

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Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • GfK Consumer confidence at 12:01 am GMT (Aug. 30)
  • Japan core CPI & unemployment rate at 12:30 am GMT (Aug. 30)
  • Japan industrial production & retail sales at 12:50 am GMT (Aug. 30)
  • Australia Building approvals & private sector credit at 2:30 am GMT (Aug. 30)
  • Japan Housing starts at 6:00 am GMT (Aug. 30)
  • German retail sales at 7:00 am GMT (Aug. 30)
  • U.K. nationwide house prices at 7:00 am GMT (Aug. 30)
  • Swiss KOF economic barometer at 8:00 am GMT (Aug. 30)
  • U.K. money supply & mortgage approvals at 9:30 am GMT (Aug. 30)
  • Euro area CPI & unemployment rate at 10:00 am GMT (Aug. 30)
  • Canadian GDP & producer prices at 1:30 pm GMT (Aug. 30)
  • U.S. personal spending & income, core PCE index at 1:30 pm GMT (Aug. 30)

What to Watch: AUD/CAD

AUD/CAD 1-Hour Forex Chart
AUD/CAD 1-Hour Forex Chart

With the weekend around the corner, we’ll be looking to take one last shot at the FX markets with this simple technical setup on AUD/CAD. The pair has been consolidating into a symmetrical triangle pattern this whole week with traders seemingly attracted to the .8950 level.

This is a pattern that typical calls for a consolidation-breakout play, which of course means we need a pick up in volatility. That may come in the Friday session with some top tier economic events from both Australia and Canada on the forex calendar.

If you’re a bull, you’ll obviously be looking for the combination of a positive read on Australian building permits & private sector credit vs. a weak Canadian GDP update. Another positive update on the U.S.-China trade war story would likely spark Aussie bullishness, which could likely be the driving factor more than the economic updates. In this situation a break of the falling highs is the cue to setup a long position, but with the weekend ahead, you’ll want to keep your exit strategy tight, unless you’re planning to turn this into a swing/longer-term position.

If you’ve a bear on AUD/CAD, you’re basically looking for the opposite scenario than above for the bulls, with addition of strengthening oil prices. A rallying oil market plus positive Canadian GDP would likely be a big boost for the Loonie and overshadow Australian data, but not likely any positive U.S.-China trade war. Again, keep the exit strategy tight unless you’re really confident in the medium-to-longer-term outlook.