U.S. Markets closed

Weak Chinese Data Yields Opportunity in EUR/AUD, USD/CAD

Christopher Vecchio

Talking Points:

- USDCAD trades in symmetrical triangle - watch 1.1185 and 1.0910.

- EURAUD respecting bullish engulfing reversal, needs to hold 1.5275 on pullback.

To keep up with developments central banks and their policy changes, be sure to sign up for my distribution list.

Chinese trade data and inflation data over the weekend severely disappointed, leading to weakness in the commodity currency bloc. In USDCAD, a consolidation has formed with a bullish tilt, although we'll respect both sides on a potential break. In EURAUD, the potential for a pullback is brewing but the rebound from last week's lows remains constructive above 1.5275.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.