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Long-Range EURAUD Scalp Eyes Initial Objectives at 1.3760

By , Currency Strategist
13 June 2013 19:19 GMT

EURAUD Daily Chart

Forex_Long-Range_EURAUD_Scalp_Eyes_Initial_Objectives_at_1.3760_body_Picture_2.png, Long-Range EURAUD Scalp Eyes Initial Objectives at 1.3760

ChartCreated Using FXCM Marketscope 2.0

Technical Outlook

  • Weekly/Daily momentum signatures look to be turning over
  • Multiple RSI trigger breaks pending offering conviction on near-term correction
  • June top (so-far) roughly 20-pips from the highest weekly close of 2011 (1.4212)
  • Supportive price action in EURUSD (approaching key res) & AUDUSD (rebound off key support)
  • Initial objective range 1.3760-1.3798
  • Secondary objectives 1.3595-1.3615 and 1.3465/70
  • Topside breach targets 1.4334 (2011 high) and 1.44
  • Key Events Ahead: Eurozone 1Q employment tomorrow

EURAUD Scalp Chart

Forex_Long-Range_EURAUD_Scalp_Eyes_Initial_Objectives_at_1.3760_body_Picture_1.png, Long-Range EURAUD Scalp Eyes Initial Objectives at 1.3760

Scalp Notes: Bottom Line: Although our longer-term metrics continue to point higher, recent price action suggests our medium-term focus should be lower towards 1.3760-1.38. A cleanly formed descending channel may continue to guide price action with rallies into 1.4035 to be sold. A break (daily close) above this mark invalidates our near-term bias. RSI has turned bearish since the start of the week with rallies into the 60-threshold likely to offer clear short-scalp triggers. The range is rather large here and profits should be meticulously booked at the targeted ATR percentage or subsequent scalp level- whichever comes first.

*We will remain flexible with our bias with a break above 1.1.4035 eyeing subsequent resistance targets. 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. Use this app to distinguish the various trade sessions.

Key Threshold Grid

Entry/Exit Targets

Timeframe

Level

Significance

Resistance Target 1

30min

1.3950

61.8% Fib Ext / US Session High

Resistance Target 2

30min

1.3993

50% Fib Extension

Bearish Invalidation

30min

1.4030/35

38.2% Fib Ext / Sunday Open

Break Target 1

30min

1.4085

23.6% Fib Extension

Break Target 2

Daily / 30min

1.4165/70

Wednesday Swing High

Break Target 3

30min

1.4200

Big Figure / Pivot

Break Target 3

Daily / 30min

1.4238

Monthly High

Support Target 1

30min

1.3814

Channel Support / 100% Fib Ext

Bullish Invalidation

Daily / 30min

1.3760/65

23.6% Retrace / Pivot Last Week

Break Target 1

30min

1.3715

Soft Support / Pivot

Break Target 2

30min

1.3675

138.2% Fib Ext / Soft Support

Break Target 3

30min

1.3635

150% Fib Ext / Soft Support

Break Target 4

Daily / 30min

1.3595-1.3615

23.6% Retracement / 161.8% Ext

Break Target 5

30min

1.3550

173.2% Fib Ext

Break Target 6

30min

1.3500

Big Figure / Soft Support

Break Target 7

Daily / 30min

1.3465/70

38.2% Retracement

Average True Range

Daily

186

Profit Targets 40-45pips

For updates on this scalp and more setups follow him on Twitter @MBForex

---Written by Michael Boutros, Currency Strategist with DailyFX

To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list

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13 June 2013 19:19 GMT