AUDNZD Pullback at Key Inflection Point- Bearish Sub 1.1250
- AUDNZD testing key near-term support confluence- break validate larger correction
- Updated targets & invalidation levels
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
- AUDNZD testing key support confluence 1.1140/50- break below needed to validate reversal
- Support break targets objectives at 1.1095 & May TL support ~1.1030
- Interim resistance at 1.1250 backed by 1.1278 - bearish invalidation
- Daily RSI divergence into the highs highlights the risk of larger correction
- Event Risk Ahead: Australian Employment on Wednesday night
Notes: The AUDNZD pullback is approaching its first level of significant support into the 1.1140/50 confluence region. We could get a rebound off this level but generally looking for short-triggers while below the weekly opening range high at 1.1250 with a break lower targeting 1.1094/97 backed by 1.1030 and the 100% extension at 1.0997.
A break above the weekly high invalidates the short-bias with such a scenario targeting subsequent resistance targets. Event risk is rather limited on this pair heading into the end of the week with only the Australian Employment report on tap on Wednesday night in New York. A quarter of the daily average true range yields profit targets of 26-28pips per scalp.
For updates on this scalp and more setups throughout the week subscribe to SB Trade Desk
Relevant Data Releases
Other Setups in Play:
- Webinar: Greek Gaps in Focus- Technical Setups in Play this Week
- Key Levels to Know on USD Majors Heading into NFPs and July Trade
- CADJPY Short Scalps Favored Sub-99.00 on Failed Gap Fill
- Webinar: Greece Charges Euro Gap & Snapback- USDJPY Remains at Risk
- USDJPY Runs Into Key Resistance- Short Scalps Favored Sub 124.35
---Written by Michael Boutros, Currency Strategist with DailyFX
Join Michael for Live Scalping Webinars on Mondays on DailyFX 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.