I’m looking to short AUD/CAD as a swing trade, and the reason is tomorrow’s interest rate decision from the Reserve Bank of Australia.
Markets expect the RBA to cut rates by 0.25%. If that happens—or if they sound more cautious about the economy—the Australian dollar could drop.
Lower interest rates usually make a currency less attractive. That’s bad for AUD.
At the same time, Canada’s central bank isn’t cutting rates. That makes the Canadian dollar stronger by comparison.
If the RBA does cut, I’ll watch for AUD/CAD to lose support on the daily chart. A lower high and a clean break down would be my entry signal.
This trade is based on fundamentals, not just a chart pattern. If the news confirms the setup, I’m in. Clear plan, managed risk, simple trade.
Markets expect the RBA to cut rates by 0.25%. If that happens—or if they sound more cautious about the economy—the Australian dollar could drop.
Lower interest rates usually make a currency less attractive. That’s bad for AUD.
At the same time, Canada’s central bank isn’t cutting rates. That makes the Canadian dollar stronger by comparison.
If the RBA does cut, I’ll watch for AUD/CAD to lose support on the daily chart. A lower high and a clean break down would be my entry signal.
This trade is based on fundamentals, not just a chart pattern. If the news confirms the setup, I’m in. Clear plan, managed risk, simple trade.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.