EURAUD Daily Chart
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
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
Join Michael on Monday morning for a Live Scalping Webinar on DailyFX at 1230 GMT (8:30ET)
