I have been aggressively scalping the AUDUSD and AUDCAD setup highlighted in Tuesday's Scalp Report. Key inflection points at 1.0445 and 1.0455 respectively have prompted a response in these pairs with our bearish bias continuing to holding in early US trade.
AUDUSD- We broke below Support at Target 3 at 1.0365 with a move below our bottom limit at 1.0335 exposing the monthly pivot at 1.0315 in pre-market trade. Medium-term focus now shifts to the 23.6% retracement off the September highs at 1.0265 while noting that a break back above the 100-day moving average at 1.0370 invalidates near-term weakness and risks a run back to the 1.04-handle.
AUDCAD - Yesterday I noted that " I'm still holding a small residual position from 1.0457 targeting 1.0385," with that level triggering limits in overnight trade. The decline has continued on course with the pair now testing interim support at the 61.8% retracement at 1.0340. A move lower puts into focus the 100-day moving average at 1.0310, the monthly lows at 1.0280 and the 50% retracement at 1.0260. Only a break back above 1.0385 invalidates our near-term bias.
USDJPY- The yen is the biggest loser against the US dollar today with the pair advancing more than 1.3% on the session. Critical Resistance for the USDJPY stands at the 61.8% Retracement taken from the March decline at 81.50. Note that while out broader bias remains weighted to the topside, this level is likely to spark a reaction with near-term support seen at the R1 monthly pivot (80.85) and the confluence of the November 2nd high and the 50% retracement at 80.65.
EURAUD - A favorable setup is now coming into focus on the EURAUD with the pair moving into a resistance zone between key Fibonacci levels at 1.2360 and 1.2410. Shorts in this region are favored against the confluence of channel resistance and the 50-day moving average at 1.2465 with a targets eyed at 1.2215 and the monthly lows at 1.2155.
---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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