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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bullish
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
Wall Street
Bearish
Gold
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
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • RT @TheStalwart: Starting to look clear that where cases are surging, deaths are starting to go up. Here's the 7-day moving average of both…
  • US 8-Week Bills Draw 0.100% Primary Dealers Awarded: 68.4% Indirect Bidders Accepted: 26.7% Direct Bidders Accepted: 4.9% B/C Ratio: 2.96
  • $Gold snap back, testing support around prior res 1796-1800. prior eight-year-high up to the 1800 psych level https://t.co/LPyHLlQpk8 https://t.co/lEkGvK14kK
  • Arizona virus cases increase 3.7%, in line with prior 7-day average - BBG
  • Hey traders! Market risk appetite is highly concentrated. What are some other market highlights for today? Find out from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/YvQTLDBK7p
  • Update on #Cryptocurrencies #BITCOIN -1.27% #BITCOINCASH -2.20% #ETHEREUM -1.62% #RIPPLE +1.59% #LITECOIN -1.11%
  • $EURUSD continuing to catch resistance from the 1292 level, working on its sixth consecutive week. This week has, so far, brought on a higher-high, but can bulls continue to drive? $USD breakdown potential the key for whether or not EUR/USD can push up for a re-test 1500 https://t.co/6MeQmEpluO
  • Hey traders! Market risk appetite is highly concentrated. What are some other market highlights for today? Find out 👇 https://t.co/ebfF9W6nCU
  • $USD $DXY | US Dollar getting a boost over the last hour and attempting to claw back downside notched earlier this week with market sentiment starting to sour. https://t.co/tZGJ4vu9Ij
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.02% 🇯🇵JPY: 0.00% 🇨🇭CHF: -0.14% 🇪🇺EUR: -0.27% 🇦🇺AUD: -0.31% 🇨🇦CAD: -0.35% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/8V1MBXTus6
AUDCHF Gap Setup- 8545 Resistance Critical

AUDCHF Gap Setup- 8545 Resistance Critical

2014-08-25 20:44:00
Michael Boutros, Strategist
Share:

Talking Points

  • AUDCHF testing 2014 high
  • Opening range / Sunday gap setup to validate scalp bias

AUDCHF Daily Chart

AUDCHF Gap Setup- 8545 Resistance Critical

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • AUDCHF gaps into 2014 highs / key resistance 8534/45- bearish invalidation
  • Breach targets resistance objectives at 8583, 8638 & 8700
  • Support at former TL resistance, channel support, 8353/60- bullish invalidation
  • Ongoing momentum divergence warns of risk for correction lower
  • Daily RSI resistance trigger pending- break would be bullish
  • Limited event risk until month’s end

AUDCHF 30min Chart

AUDCHF Gap Setup- 8545 Resistance Critical

Notes: Divergence along the highs on the intra-week chart above followed by two support-trigger breaks in momentum warns of a possible turnover in the AUDCHF as we test the yearly highs / key resistance at 8544/48. That said, the pair has now filled the Sunday-open gap and we’ll look to play the break of this range with a move below trendline support eyeing subsequent support targets.

Bottom line: the broader topside bias can only be invalidated with a break sub 8353/60: that said, near-term the pair remains at risk for a pullback while below 8545 and we’ll look for a break of the weekly opening range / Sunday gap-fill for validation of our immediate scalp bias. Ultimately, if such a pullback does materialize, it may offer more favorable long entries closer to the 84-handle. Look for the breach above 8545 to put the longs back in play with a break of the daily RSI resistance trigger offering further conviction on long-side exposure.

Note that the average true range has remained rather tight here so we’ll increase the profit targets to 1/3 of the daily ATR- this puts us at approximately 16pips per scalp. There is limited event risk out of Australia and Switzerland heading into the close of August trade and as such we’ll look for broader market sentiment to drive volatility. Follow the progress of this trade setup and more throughout the trading week with DailyFX on Demand.

* 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

Technical Relevance

Resistance Target 1

30min

8519

Soft Resistance / Pivot

Bearish Invalidation

Daily / 30min

8544/48

July High / 1.618% Ext / 78.6% Retrace / Weekly ORH*

Break Target 1

Daily

8583

38.2% Retracement

Break Target 2

Daily

~8600

Psychological Barrier / Approximated TL Res

Break Target 3

Daily

8638

88.6% Retracement

Break Target 4

Daily

8666

R2 Monthly Pivot

Bullish Invalidation

Daily / 30min

8486/97

38.2% Retrace / Weekly ORL* / TL Support

Break Target 1

30min

8468

6/13 High / 50% Retracement

Break Target 2

30min

8450

61.8% Retracement

Break Target 3

30min

8426

78.6% Retracement / July ORH*

Break Target 4

30min

8393

August 15th low

Break Target 5

Daily / 30min

8373/76

August Low / 100% Ext

Average True Range

Daily (20)

48

Profit Targets 15-17pips

*ORH: Opening Range High

*ORL: Opening Range Low

Other Setups in Play:

---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 Live Scalping Webinars this week Tuesday – Thursday on DailyFX Plus (Exclusive of Live Clients) at 15:30 GMT (11:30ET)

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.