AUDNZD Target Key Resistance- Bullish Scalp Bias at Risk Sub 1.09
Talking Points
AUDNZD eyeing key resistance range 1.0882-1.0906
Scalp bias awaiting conviction break of weekly/monthly opening ranges
Event risk on tap from Australia & New Zealand this week
AUDNZD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
AUDNZD eyes key resistance range 1.0882/1.0906
Weekly opening range in focus- 1.0780-1.0864
Topside breach targets resistance objectives at 1.0946, 1.1035, 1.1163
Broader bias weighted to the downside sub-1.1200 (August Low)
Support at 1.0772 – bullish invalidation
RSI support trigger pending / 60-breach would be constructive
Event Risk on Tap: Australian Employment Report and New Zealand Business Manufacturing PMI & Food Prices on Wednesday
AUDNZD Scalp Chart
Notes: Although the broader bias remains weighted to the downside, the rebound off the January low and daily RSI divergence has kept our focus on the long side of AUDNZD in the near-term. The pair is now eyeing key resistance at 1.09 and if breached, would suggest that a more significant low may have been put in last month.
That said, the weekly and monthly opening ranges will be paramount here and we’ll continue to favor long exposure while above 1.0772. This level is defined by the February opening range low and the 38.2% retracement of the advance off the January low. Should this level be compromised, look for a break below the 1.0734 pivot to put the larger downtrend back into focus. Bottom line: our immediate focus is on a conviction break of the weekly/monthly opening range with our broader bias weighed to the downside below 1.1200.
Be on the lookout for event risk tomorrow out of Australia and New Zealand with the Aussie employment report taking central focus tomorrow evening. Follow the progress of this trade setup and more throughout the trading week in DailyFX on Demand.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Key Threshold Grid
Entry/Exit Targets | Timeframe | Level | Significance |
Resistance Target 1 | 30min | 1.0864 | 50% Retrace / Weekly ORH |
Resistance Target 2 | Daily / 30min | 1.0882 | 161.8 % Ext / 61.8% Retracement |
Resistance Target 3 | Daily / 30min | 1.0905/10 | 38.2% & 78.6% Retracement(s) |
Bearish Invalidation | Daily / 30min | 1.0945/52 | Monthly ORH / 38.2% Extension |
Break Target 1 | 30min | 1.1005 | 50% Fib Extension |
Break Target 2 | Daily / 30min | 1.1033/35 | 50% Retracement |
Break Target 3 | 30min | 1.1059 | 61.8% Fib Extension |
Break Target 4 | 30min | 1.1113 | Soft Resistance / Pivot |
Break Target 5 | Daily / 30min | 1.1161 | 61.8% Retracement |
Support Target 1 | 30min | 1.0830 | Soft Support / Pivot |
Bullish Invalidation | Daily / 30min | 1.0772/80 | Weekly & Monthly ORL / 38.2% Retrace |
Break Target 1 | 30min | 1.0746 | 23.6% Retracement |
Break Target 2 | 30min | 1.0718 | 50% Retracement |
Break Target 3 | Daily / 30min | 1.0665 | 61.8 Retracements |
Daily (20) | 97 | Profit Targets 22-25pips | |
*ORH: Opening Range High
*ORL: Opening Range Low
Other Setups in Play:
AUDCAD Eyes Key Resistance- Bullish Scalp Bias at Risk Sub 9953
EURNZD Scalps Eye Key Inflection Point- Bias at Risk Sub 1.6720
USDCHF Defends January Range Low- Scalp Bias Bullish Above 90
---Written by Michael Boutros, Currency Strategist with DailyFX
For updates on this scalp and more setups follow him on Twitter @MBForex
To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list
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