AUDUSD Scalps on Hold- CAD, EUR Comes into Key Resistance Range
AUDUSD- The aussie bullish bias adopted at the close of trade on Thursday continued into the open of trade this week with the pair climbing back into the 1.04-handle. Although I did play a short-scalp off 1.0412 pivot level (former October High) for nearly 20pips, the pair remains at key levels and as such, we will maintain a neutral bias into the open of Asia Pacific trade.
Levels Highlighted in last week's Scalp Report
USDCAD- 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 (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- The pair has moved into our "sweet spot" resistance level between the S1 monthly pivot and the 200DMA at 1.2794-1.2805 in early US trade and has held around this mark into the close of trade. 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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