EURAUD Scalps Target 1.46- Breakout Levels Well Defined
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Talking Points
EURAUD responds to key resistance 1.4577- 1.4601
Scalp bias constructive above 1.4345
EUR/AUD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
EURAUD rebounds off key resistance 1.4577-1.4601- bearish invalidation level
Breach targets objectives at the Andrew’s Pitchfork bisector ~1.4700, 1.4734/50, 1.4800/16
Constructive above 1.4340/45, 1.4302/13- bullish invalidation
Support break targets objectives at 1.4270, 1.4206 & 1.4166.
Daily RSI resistance trigger / 60-breach would be constructive
Event Risk Ahead: Australian NAB Business Confidence/Conditions tonight, China CPI tomorrow, Eurozone Industrial Production tomorrowand CPI on Thursday
EUR/AUD 30min Chart
Notes: An outside key reversal candle last month off pitchfork support shifted our bias to the long side of the EURAUD with the focus on key resistance at the 1.46-handle. This region has continued to cap the advance and remains our near-term bearish invalidation level. Note that the initial pullback off that level last month found support right at former pitchfork resistance and keeps the broader topside play in focus.
Bottom line: looking for long-triggers / buy pullbacks while above 1.4345 withonly a break sub-1.43 shifting our bias back to the short-side. A breach above of the 1.46-handle (on a close basis) offers further validation of our near-term directional bias with such a scenario eyeing subsequent topside objectives. Follow the progress of trade setups like these and more throughout the trading week with 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 | Technical Relevance |
Resistance Target 1 | 30min | 1.4498- 1.45 | 10/8 Swing High / 38.2% Retracement |
Resistance Target 2 | 30min | 1.4542 | 23.6% Retracement / Last Week’s High |
Bearish Invalidation | Daily / 30min | 1.4575– 1.4601 | Weekly ORH (1.4612) / July High / 38.2% Retrace |
Break Target 1 | 30min | 1.4668 | 50% Retracement |
Break Target 2 | Daily / 30min | 1.4700 | June Close High / ~Pitchfork Bisector |
Break Target 3 | Daily / 30min | 1.4735/50 | 200DMA / R1 Monthly Pivot / June High |
Break Target 4 | Daily / 30min | 1.4800/16 | 61.8% Ext / 50% Retrace / December Low |
Support Target 1 | 30min | 1.4428 | 61.8% Retracement |
Support Target 2 | 30min | 1.4377/84 | 78.6% Retracement / 100DMA |
Support Target 3 | 30min | 1.4340/45 | 9/12 Close / Thursday Low |
Bullish Invalidation | Daily | 1.4302/13 | Monthly ORL / 38.2% Retrace / 50DMA (1.4297) |
Break Target 1 | Daily | 1.4270 | Monthly Central Pivot |
Break Target 2 | 30min | 1.4237 | Sept Swing Low / Soft Support |
Break Target 3 | 30min | 1.4206 | 50% Retracement |
Daily (20) | 133 | Profit Targets 31-34pips | |
*ORH: Opening Range High
*ORL: Opening Range Low
Other Setups in Play:
---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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