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NZDUSD Scalps Target Key Resistance at 0.8000

NZDUSD Scalps Target Key Resistance at 0.8000

Michael Boutros, Strategist

Talking Points

NZD/USD Daily Chart

NZDUSD Scalps Target Key Resistance at 0.8000

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • NZDUSD struggles at key resistance 7962/72- bearish invalidation
  • Support at today’s low 7805
  • Break targets key support at 7682-7706- bullish invalidation
  • Support objectives at 7633, 7545, 7456
  • Resistance breach targets 8053, 8122/37, Pitchfork bisector ~8225
  • Daily RSI approaching 50- breach would be constructive
  • Momentum support trigger pending- break below would be bearish
  • Event Risk Ahead: New Zealand Business Manufacturing PMI tonight, US Industrial Production tomorrow, US Housing Data & University of Michigan on Friday

NZD/USD 30min Chart

NZDUSD Scalps Target Key Resistance at 0.8000

Notes: The NZDUSD has breached above the weekly opening range, shifting our scalp bias back to the topside. The subsequent rally has taken the pair into a key resistance level just below the 80-handle and although our topside bias remains in effect above 7900, near-term we’ll look for a reaction off this threshold.

Bottom line: long exposure into the 80-handle is at risk with breach above needed to maintain our near-term scalp bias. That said, we’ll be looking for intra-day short-triggers while below this region. Caution is warranted as we head into event risk tonight from New Zealand and data out of the US tomorrow and Friday with the releases likely to fuel added volatility in Kiwi and Dollar based pairs. Follow the progress of trade setups like these 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

Bearish Invalidation

Daily / 30min

7962/72

61.8% Ext / 23.6% Retrace / Monthly Central Pivot

Break Target 1

30min

8000

Big Figure / Soft Resistance

Break Target 2

Daily / 30min

8045/60

100% & 150% Ext / February Low

Break Target 3

30min

8100

Big Figure / Soft Resistance

Break Target 4

30min

8122/37

38.2% & 61.8% Retracement

Break Target 5

30min

8162/67

August 2013 High / 50DMA

Support Target 1

30min

7900

Soft Support / Pivot

Support Target 2

30min

7850

61.8% Extension

Support Target 3

30min

7820

61.8% Retracement

Bullish Invalidation

30min

7780

76.4% Retracement / Weekly ORL (7794)

Break Target 1

30min

7745

88.6% Retracement

Break Target 2

Daily / 30min

7707/13

Sept Low / October ORL

Break Target 3

Daily / 30min

7682

2013 Low

Break Target 4

Daily

7633

2009 High

Average True Range

Daily (20)

115

Profit Targets 26-29pips

*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 on Mondays on DailyFX and Tuesday – Thursdays on DailyFX Plus (Exclusive of Live Clients) at 12:30 GMT (8:30ET)

Interested in learning about Fibonacci? Watch this Video

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

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