AUDCAD Short Bias Vulnerable- Scalps Target Weekly Opening Range
- AUDCAD coming into key area of support
- Shorts at risk above 2010 TL Support
- Event risk on tap next week
Chart Created Using FXCM Marketscope 2.0
- AUDCAD coming into key support region / 2013 Open / 2010 TL Support
- Shorts at risk into9420/46, 9392support regions- bullish invalidation
- Interim resistance 9566/72, 9698 & Pitchfork resistance ~ 9720
- Daily RSI resistance trigger pending- breach would be constructive near-term
- Event Risk Ahead: Australian Employment & Canadian New Housing Price Index on Thursday
Notes:The AUDCAD is trading within the confines of a well-defined descending Andrew’s pitchfork formation off the November high with today’s low reversing off the confluence support region at 9440/58. Ongoing momentum divergence into this support zone accompanied with a break above the November TL suggests the pair may be reaching near-term exhaustion. That said, we’ll be looking for a low to buy with a breach of the weekly opening range high needed to validate a near-term rebound.
Bottom line: looking for long-triggers / buy dips while above the 94-handle with a breach above the pitchfork bisector eying subsequent topside resistance targets. Note that the broader outlook remains weighted to the downside and inevitably we would be looking to sell the proposed rally. Caution is warranted heading into Thursday’s Australian employment report with the release likely to fuel added volatility in the 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:
- Key EURUSD Scalp Targets Heading Into ECB / NFPs
- Scalping the AUDNZD Rebound- Key Resistance 1.09
- EURJPY Correction to Favor Short Scalp Entries Sub-1.48
---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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