AUDNZD at Critical Inflection Point- Scalps Eye Weekly Opening Range
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Talking Points
AUDNZD approaches key inflection point- weekly opening range in focus
Updated targets & invalidation levels
AUDNZD Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
AUDNZD testing multi-year slope support- Major inflection point
Weekly opening range break to offer guidance 1.0963-1.1061
Break faces key support 1.0910/35 – Subsequent support objective 1.0711/33
Breach targets 1.1153 & the monthly open at 1.1213 (broader bearish invalidation)
Daily RSI support-triggers in view- break would be bearish
Key Event Risk Ahead: U.S. ISM Manufacturing tomorrow and Australia Retail Sales & NFP on Friday
AUDNZD 30min
Notes: The AUDNZD is approaching critical slope support dating back to the 2014 January low with the weekly opening range taking shape just above this key inflection point. The immediate risk is for a rebound off this level as we’ve seen on the last four attempts but we’ll be looking for a break of the weekly OR to validate the near-term directional bias. A downside break still faces key daily support into 1.0890-1.0910/35. Note that intraday RSI has also continued to hold between 40-60 and we’ll look for that to change on a break of this week’s range.
Bottom line: we’re coming into some serious support with a break below 1.09 risking more significant losses for pair. A breach of the weekly highs targets resistance objectives at 1.1108 & 1.1153. A quarter of the daily average true range (ATR) yields profit targets of 28-30 pips per scalp. Caution is warranted heading into the end of the week with the monthly close/open & NFPs still on tap.
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Relevant Data Releases
Other Setups in Play:
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---Written by Michael Boutros, Currency Strategist with DailyFX
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