It's been a great week and we shift our focus to the NFP print tomorrow. Here's an update on our setups highlighted in yesterday's Analyst Pick.
EURUSD- Our short-bias initiated on Wednesday has remained intact and we noted yesterday that the, "1.3070 target triggered with the pair reversing just 4 just pips ahead of our secondary target at 1.3055." The 1.3055 target triggered during the ECB press conference with the break opening up a decline into the 61.8% retracement at 1.2952 (Break target 2) noted in Monday's Scalp Report. Momentum indicators look a bit stretched here so we've opened a small long against the lows targeting 1.2975. Look to be flat heading into NFPs with the print likely to offer an intra-day directional bias. The broader prospects for the EURUSD remain bearish below the 1.31-threshold.
AUDUSD- This setup has been rather disappointing with neither advances above 1.05 nor breaks below 1.0480 offering any follow through. We've been flat on this setup after getting stopped out of a short (TO THE PIP) with the most recent spike above 1.05. Note that the key 61.8% Fibonacci extension taken off the November lows rests just above today's highs at 1.0518. We maintain that “The 1.0440/45 threshold remains a key pivot both on near-term and daily timeframes, “with a break below once again shifting our bias lower.
GBPUSD- No Change from Yesterday- "The sterling has been unable to close above out initial objective reached on Monday at the 61.8% Fibonacci extension taken from the November low at 1.6105. With three days of failed attempts at a breach, the path of least resistance may lead this lower head of the BoE interest rate decision tomorrow with no change in policy expected from the central bank. Key support rests at the 61.8% retracement taken from the November decline at 1.06040..." This level has now triggered and continues to hold in afternoon trade. We are flat here noting that the medium-term bias remains weighted to the topside above 1.6012. A breach of the highs still targets the range between 1.6175-1.6195.
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---Written by Michael Boutros, Currency Strategist with DailyFX
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