AUDUSD Scalps in Play, Intra-day bias shifts to bullish
AUDUSD- As noted yesterday, "A new scalp setup was tweeted this morning utilizing a simple Fibonacci retracement off the November 16th low and these levels will serve as our scalp targets as the downside correction plays out. Our near-term objective remains 1.0330 noting that the topside risk still remains at the 61.8% retracement from the September decline at 1.0445." The session low as of 11AM has been 1.0337 with our shorts closing out just higher in early US trade. With broader risk assets treading water ahead of the Thanksgiving holiday, we now adopt a bullish intra-day bias against the 1.0330 threshold with a break below this level risking declines into the near-confluence of the 200-day moving average and the monthly pivot at 1.0315/20. Initial topside targets noted in today's updated aussie scalp chart.
JPY- The yen crosses have continued to make remarkable advances with the lower yielder falling against all its major counter-parts today as Japanese economic data continues to deteriorate. Use caution on these pairs as they have a propensity to remain one-sided for some time before correcting.
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Flat on the rest of our setups as we head into Holiday Trade. Happy Thanksgiving Everyone!
---Written by Michael Boutros, Currency Strategist with DailyFX.com
For updates on this setup and more follow him on Twitter @MBForex
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- Fibonacci retracement