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.
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Relevant Data Releases
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---Written by Michael Boutros, Currency Strategist with DailyFX
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