We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
Gold
Bearish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • Bank of Japan's Kataoka: It is appropriate for the central bank to lower interest rates, BoJ should strengthen forward guidance. Coordination with fiscal policy very important -BBG
  • Looking at my majors-based #Yen index, #JPY could have quite the room to rally on average if there is a deeper turn in equities. The currency has still largely been consolidating since December on average and a break above the January and February highs could mark a bullish trend https://t.co/fIA4BeTmyf
  • The $JPY has lost out to a broadly resurgent US Dollar, with a clearly dwindling band of Yen bulls left to hope that the most recent rise has become overextended. Get your market update from @DavidCottleFX here:https://t.co/7Ndm5jiOi7 https://t.co/nP50B7d4yi
  • The double-edged sword of globalization: Pro: Hyper interconnectedness means everything is transmitted far more quickly. Con: Hyper interconnectedness means everything is transmitted far more quickly.
  • China reports 433 additional #coronavirus cases on February 26 which brings total to 78,497. 29 deaths were also reported bringing total fatalities to 2,744 -BBG
  • Bank of Korea says it will continue to monitor the #COVID19 outbreak (BBG)
  • BREAKING: SOUTH KOREA CONFIRMS AN ADDITIONAL 334 #CORONAVIRUS CASES BRINGING THE TOTAL TO 1595. (BBG)
  • The #Yen may rise after the #WHO reported that most new #coronavirus cases are now emanating outside of China. #SP500 futures are pointing lower with Thursday’s session in focus $USDJPY - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/02/27/Yen-May-Rise-as-Most-New-Coronavirus-Cases-Emerge-Outside-of-China.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/md4R2F0JBe
  • #USDKRW down https://t.co/MJKDR1lPwM
  • Bank of Korea holds rates at 1.25% (BBG)
EURAUD Breakout Seeks Validation- Scalps Eye 1.4340 Resistance

EURAUD Breakout Seeks Validation- Scalps Eye 1.4340 Resistance

2013-10-23 19:20:00
Michael Boutros, Technical Strategist
Share:

Talking Points

  • Trendline break looks for validation with breach above Fibonacci resistance
  • AUDUSD price action signals risk of correction- Constructive for EUR/AUD
  • Bias bullish above 1.4140 – Long conviction above 1.4340

EURAUD Daily Chart

Forex_EURAUD_Breakout_Seeks_Validation-_Scalps_Eye_1.4340_Resistance_body_EURAUD_DAILY.png, EURAUD Breakout Seeks Validation- Scalps Eye 1.4340 Resistance

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • EURAUD breaches trendline resistance off August high- 1.4340 breach to validate
  • Topside breach eyes resistance targets at 1.4469 and 1.4560/75
  • Interim support 1.4220/40- 1.4140 Bullish invalidation
  • Daily RSI long trigger pending at 50 (note trigger break earlier)
  • Key Events Ahead: Eurozone Manufacturing, Services & Composite PMI Thursday

EURAUD Scalp Chart

Forex_EURAUD_Breakout_Seeks_Validation-_Scalps_Eye_1.4340_Resistance_body_EURAUD_SCALP.png, EURAUD Breakout Seeks Validation- Scalps Eye 1.4340 Resistance

Notes: Similar to the EURNZD setup noted in yesterday’s report, but not with quit as much conviction. A bullish weekly opening-range break and subsequent breach above confluence resistance (1.4226-1.4238) warranted long exposure after seven consecutive daily attempts at breaking below the 1.4122/40 support structure failed. The rally encountered Fibonacci resistance at 1.4336/40, a region that has served as a clear pivot dating back to early September. Momentum seems uninspiring in the near-term with pullbacks likely to offer favorable long entries and clearer topside triggers. A breach above the highs puts the larger channel-break back on track with such a scenario eying objectives at 1.4390 and 1.4465.

Slight bullish divergence on the daily chart has been identified and we’ll continue to target topside scalps. Only a break and close below 1.42 invalidates our scalp bias while a move below 1.4140 would negate our broader directional bias; such a scenario targets key longer-term Fibonacci support at 1.4041 and the 38.2% retracement of the 2013 range at 1.3955.

Note that near-term price action suggests that the AUSDUSD may be ready to correct lower as well after pressing into 4-month highs before breaking below the weekly range low. As such we will be cautiously watching price action develop for further evidence that an interim high may be in place.

* 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

Significance

Bearish Invalidation

Daily / 30min

1.4336/40

50% & 23.6% Retracements

Break Target 1

30min

1.4380/92

10/13 Weekly High / 61.8% Retrace

Break Target 2

30min

1.4430

Soft Resistance / Pivot

Break Target 3

Daily / 30min

1.4465/70

38.2% & 78.6% Retracements

Break Target 4

30min

1.45

Psychological Figure / Pivot

Break Target 5

Daily / 30min

1.4560/75

Late Sept High / 50% Retracement

Support Target 1

30min

1.4290

38.2% Retracement

Support Target 2

30min

1.4225/37

23.6% Retrace / 38.2% Extension

Support Target 3

30min

1.4175

Soft Support / Pivot

Bullish Invalidation

Daily / 30min

1.4122/40

October Low / 50% Fib Extension

Break Target 1

30min

1.4080

Soft Support / Pivot

Break Target 2

Daily / 30min

1.4042

61.8% Fib Ext

Average True Range

Daily

121

Profit Targets 28-30pips

Other Setups in Play:

Trade these setups and more alongside the DailyFX research team everyday with DailyFX on Demand

---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

Join Michael for a Live Scalping Webinaron Monday on DailyFX and Tuesday, Wednesday and Thursday mornings on DailyFX Plus (Exclusive of Live Clients) at 1230 GMT (8:30ET)

Introduction to Scalping Strategies Webinar

Interested in learning about Fibonacci? Watch this Video

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.