Comdolls have the spotlight this week with top tier events coming soon. Check out these simple technical setups on AUD/JPY, AUD/NZD, and NZD/CAD!
First up is AUD/JPY, which has been chugging higher after breaking above the range spotted in last week’s Crosses Watch. Momentum has slowed down enough to where we are now seeing a symmetrical triangle forming on the one hour time frame.
And given that this is forming in an uptrend, be on the lookout for an upside break as the higher probability play. But we’ve got top tier events from Australia pretty soon (retail sales, trade balance data, and the latest RBA monetary policy decision), so don’t rule out a downside break given the possibility of any of those events shifting broad Aussie sentiment.
Got another symmetrical triangle setup, this time on AUD/NZD. This is another great pair to watch, not only on the upcoming top tier Aussie economic events, but we’ve also got New Zealand’s quarterly employment report coming in a couple of sessions.
So, it’s a high probability of volatility coming for AUD/NZD, but the question is will the cards line up for a significant directional move or will we only see choppiness? We’ll have to wait and see but be sure to keep an eye on this pair!
Last but not least, we’ve got interesting price action on NZD/CAD, which has basically been in a ranging pattern over the last week or so. It’s currently retesting the bottom of the range (0.9020) but instead of quickly bouncing like the last couple of touches, the pair is consolidating at the moment.
This is likely in anticipation of not only the top tier NZ event mentioned above, but at the end of the week we’ll see the monthly Canadian employment report. With two jobs data releases for one pair in the same week, odds are high of volatility rising for NZD/CAD, and the play to watch out for is a break of that mini-consolidation pattern we’re currently seeing just above the 0.9000 handle.
A break higher is not likely to see resistance until the top of the range (between 0.9080 – 0.9100), while a break lower should see smooth sailing until around the 0.9030 – 0.9040 area.