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RBA helps the AUD and NZD

Tomasz Wiśniewski

Hawkish RBA lifts the AUD and creates a nice trading opportunity on the AUDUSD. First of all, we do have a bounce from the up trendline. Next are the correction equality pattern and the iH&S formation. What is more, the price came back above the 38,2% Fibonacci and used that as the closest support. All that is very positive for the AUDUSD in the mid-term.

NZDUSD also uses this optimism to climb higher. Here we do have a false breakout below the 0.682 support and the inverse head and shoulders formation. For the clear buy signal, we need to wait for the breakout of the neckline but that seems imminent.

USDCAD made a double top formation and broke the lower line of the wedge, after the idea of the iH&S formation collapse entirely. Currently, the price is fighting with the support on the 1.268 and if we will be able to close the day below that area, we should receive a strong sell signal here.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

This article was originally posted on FX Empire