If the market gets confirmation that Canadian economy is doing better than the US one, which had a very bad Q2, USD/CAD will suffer.
AUD/CAD is ready for action
SELL at 0.9580; TP 0.9520; SL 0.9600
BUY at 0.9620; TP 0.9660; SL 0.9605
With Canadian economic releases later today at 15:30 MT time, the Canadian dollar is getting ready for the increase in volatility.
There’s an interesting technical setup in AUD/CAD. The picture on D1 looks like a “Head and Shoulders”, although the pattern isn’t confirmed yet. The pair is below 200-day MA (0.9615) and has a scope for a decline to the 38.2% Fibonacci level. Only the advance above the moving average will give the Aussie a chance to test the previous highs.
On H4, the pair’s under the weight of MAs and the oscillator giver negative signs.
The dollar index was up late Tuesday afternoon in Asia, extending the 0.8% gain in the previous session, when COVID-19 fears and worries over the US Congress’ stimulus impasse drove a selloff across other assets.
Bank of England Governor Andrew Bailey delivered a speech today. Let’s discuss what it means for a trader.
Gold has started a remarkable downside correction and stands on the key 23.6% retracement area after a failure to hold the 38.2% retracement area.