It's a slow burner in the US session with the dollar taking back some of the declines seen yesterday. As the directional bias continues to decay, we'll look for clarity in early Asian trade with targets in view on a few of our setups.
AUDUS- The RBA did note that members, "considered more easing may be appropriate in the period ahead" with the aussie coming off the 1.0415 pivot zone in early Asia trade. I pressed a quick 25pip scalp off 1.0410 but have been flat ever since. 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.
USDCAD- No Change From Yesterday- Still looking for a deeper correction to get long- Short-term, look lower- "Key Barrier at 1.0040 noted in last week's report did hold on Friday after a 16pip false break putting into view our primary objective cited this morning at 9945-9955 region (which triggering in early US trade). The pair seems to have made a clean 5-wave advance off the September lows with a near-term rally likely to offer entries to press the correction lower. Long-term objective remains bullish above the 38.2% retracement (taking into account the Friday high) at 9894. An RSI trigger break lends further conviction to our near-term bias with a break below the 50-threshold likely to fuel declines into the 99-handle."
EURUSD- Not much has Change From Yesterday- A brief break of the highs in overnight trade gave way to a decline that quickly stalled at the 38.2% retracement taken from the November 13th advance. A break of the daily highs puts into focus the range between 1.2842 (38.2% retracement from the Sept high) and 1.2860 (61.8% Extension off the Sept Highs). Key Support still 1.2740- Broader bias remains bearish- near-term bias leaves room to 1.2860."
---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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