Talking Points
- EURAUD opening range shift focus higher
- Rally targeting near-term resistance at 1.4650
- Event Risk on Tap
EUR/AUD Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
- EURAUD weekly opening range break puts long-scalps in play
- Topside resistance objectives at 1.4547- bearish invalidation (note 2013 ML in blue)
- Breach targets 1.4808 & key resistance at 1.5028/56
- Bias remains constructive above 1.4364/83- bullish invalidation
- Daily RSI testing a breach above 50- close above would be bullish
- Event Risk Ahead: Eurozone CPI Estimate & Unemployment Rate tomorrow & RBA Interest Rate Decision on Monday
EUR/AUD 30min
Notes:Similar to the GBPAUD setup featured yesterday, the EURAUD broke above the weekly opening range and near-term resistance last night at 1.4366/83, shifting the scalp bias to the long-side of the pair. The near-term bias remains constructive while above the median-line off the monthly lows with key resistance coming into view just higher at 1.4615/47. Note that the upper median-line parallel comes in just higher (daily chart also has a median line dating back to August 2013 high) and if breached is likely to fuel further advances into initial targets at 1.4712 & 1.4808.
Bottom line: looking to buy pullbacks / resistance trigger breaks in momentum while above 1.4366 with a breach above 1.4650 needed to keep the topside in play. A break below the median-line bisector invalidates our near-term bias with such a scenario targeting the lower MLP currently just above the 1.41-handle. The range is rather healthy here with a quarter of the daily average true range (ATR) yielding profit targets of 50-53 pips per scalp. Caution is warranted ahead of Eurozone data tomorrow and the RBA interest rate decision early next week with the releases likely to fuel added volatility in EUR & AUD 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:
- GBPAUD Weekly Opening Range Setup- Long Scalps at Risk Sub-1.92
- Scalping the AUDCAD Reversal- Shorts Favored Below 9928
- Gold Stalls at Technical Resistance- Remains Constructive Above 1262
- Scalping NZD/JPY Breakdown- Shorts Favored Sub 90.00
- AUDUSD Scalps Target 8300 Resistance
---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 at 13:30 GMT (8:30ET)
Interested in learning about Fibonacci? Watch this Video
