The RBA is set to meet on Tuesday (1st Oct). The market is expecting a 77% chance of a 25bps rate cut for this meeting. The tricky part is that, in the past, we have seen the AUD rally after a rate cut, reason being that the market has already priced in the event of a rate cut.
CADCHF is a pair that has been amazingly true to Harmonic Patterns. Price movement continuously falls within the Fibonacci ratios to precision. Trade ideas here is to trade according to what we see on the charts.
On the Brexit front, there were lack of any solid development, but this has not stopped the market from buying the pound, hoping for some positive news out of the Brexit negotiations. However, a potential reversal move is now on the table.
The Brexit news will be the catalyst to move this pair. The lack of real optimism has been limiting the appeal for GBP. The pair getting resisted with a Bearish Bat presenting itself at a Sell Zone.
The Aussie Dollar seems to be looking for reasons to fall. Last week’s unemployment rate in August ticked up to 5.3% from 5.2% easily pushed down the AUDUSD by a 100 pips lower.