AUDUSD/USDCAD Chart Highlights:
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AUDUSD channel inside weekly triangle
AUDUSD has been a real grind along with most of the major FX world. The size of the 3-month range when adjusted for 52-week volatility is in the bottom 16% when looking back over the past five years. While small, it can get smaller with some room to go before the apex of a developing wedge is met.
The descending wedge on the weekly chart (excluding the flash-crash low) is in-line with the broader trend lower since the beginning of last year, suggesting we are more likely to see a downside break. Cracking the 7000-mark will be the key for Aussie to really start rolling downhill again.
Shorter-term, there is a channel developing within the wedge. This structure can be used as a guide for fades on the top and bottom-side for as long as it holds. The bottom-side parallel is anticipated to give-way at some point fairly soon, though.
AUDUSD Weekly Chart (Descending wedge forming)
AUDUSD Daily Chart (Trading inside channel)
USDCAD forming a triangle within upward channel
Choppy trading in USDCAD has created the narrowest 3-month range (adjusted to 52-week vol) since October. We are also seeing this range tighten on the daily time-frame into a triangle formation. Giving the benefit of the doubt to the upward slope of the channel in place since September 2017, an upside break is anticipated not too long from now. A breakout should have the 13600s in play relatively quickly. To turn USDCAD negative, broadly speaking, a breakdown out of the channel and below the yearly low at 13068 will be needed.
USDCAD Weekly Chart (narrow range within upward channel)
USDCAD Daily Chart (triangle forming)
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—Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX