EURUSD: Potential triangle; Selling into rallies below 1.30

• Australian Dollar continues to unravel: 2 members of RBA (including Glenn Stevens) expect the A$ to continue to unwind over the foreseeable future, so perhaps we are finally seeing the resumption of the A$ downtrend I have been banging on about all year! Maybe...

• USD remains strong: Traders continue to pile into the Greenback in the lead-up to next week FOMC and FED meetings next week. It could be another explosive week, especially if they disappoint.

UP NEXT:

• EUR: High expectations for industrial production, which leaves room for disappointment if falls flat. EURUSD remains within range but could be due a breakout this session.

• US: Data from the US is more likely to provide any catalysts tonight. Keeping in mind that the Greenback has been exceptionally strong, so if we see enough poor data tonight this could cause deeper retracements. Until then it is advisable to stick with the dominant, USD bullish trend.

TECHNICAL ANALYSIS:

USDCAD: Hovers below resistance; Awaits next directional clue

With a US data dump tonight we do run the risk of low-range trading leading up to this event. This makes an ending diagonal (bearish wedge) below the resistance zone a likely scenario, which if confirmed would target the base of the wedge pattern as a minimum.

At which point, taking into consideration the bullish trend on daily, weekly and monthly timeframes then I can consider bullish setups at the highlighted support zones.

Should the bearish wedge not materialise then we can expect direct gains above the weekly highs to the next resistance zone.

EURUSD: Potential triangle; Selling into rallies below 1.30

With data form Eurozone and US tonight it should [hopefully] be enough to break out of range. Fingers crossed. Whilst it may be tempting to look at EURUSD D1 and say 'this looks oversold' it always leaves room for another leg lower if we see poor Euro data and string US.

That said, if we close the week around current levels it will provide a Bullish Hammer on D1. until then, I am seeking sell set-ups below 1.30 as this is a string zone of resistance. Ideally we will see direct losses as part of a continuation pattern.