Scalping the AUDNZD Rebound- Key Resistance 1.09
- AUDNZD responds to key support range
- Scalps target near-term recovery /short entries higher
- Event risk on tap next week
Chart Created Using FXCM Marketscope 2.0
- AUDNZD responds to key support region ~ 1.0760- bullish invalidation
- Long scalps in play- short entries higher up
- Key resistance 1.0892- 1.0905 – bearish invalidation
- Break below 2014 TL support targets 1.0663 & 1.6120
- Weekly opening range in view- break to validate near-term bias
- Event Risk Ahead: Australian 3Q GDP & Trade Balance tonight
Notes: The pair is holding within the confines of a well-defined descending pitchfork formation off the November highs. We’ve been tracking the rebound off the 1.0746/62 support range since the start of the week with the break above median line today targeting the weekly opening range high at 1.0856 and pitchfork resistance. Key resistance remains at 1.0892-1.0905 with a breach above this threshold needed to invalidate the broader downside bias.
Bottom line: Looking immediately higher while above 1.0760 with a subsequent rally likely to offer more favorable short entries. Caution is warranted heading into Australia’s 3Q GDP report tonight amid expectations for a pickup in the growth rate with the print likely to fuel added volatility in Aussie crosses.
* 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.
Relevant Data Releases
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
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