AUDNZD Free Falls into the August Open- Bearish Sub 1.1175
- AUDNZDtesting key near-term support- Short scalps favored sub-1.1175
- Updated targets & invalidation levels
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
- AUDNZD reversal off resistance now testing monthly open support 1.1067
- Bias remains weighted to the downside while below slope resistance ~1.1175
- Break lower targets support objectives at the monthly low 1.1009 & 1.0910/35
- Daily RSI breaking sub-50 for the first time this moth- bearish
- Daily momentum in consolidation- look for break for guidance
- Limited event risk into end of week
Notes:The AUDNZD reversal off resistance early this week has now come into key near-term support at 1.055/67. This region is defined by the 61.8% retracement of the advance off the July low & the August open. The immediate short-bias is at risk while above this region with near-term resistance eyed at 1.1105/08 & 1.1145 with our bearish invalidation level now lowered to 1.1175.
Bottom line: we could see some upside from here but we’ll be looking for short triggers into resistance with a break of the lows targeting the monthly opening range low at 1.1009 backed by 1.0955. A quarter of the daily average true range (ATR) yields profit targets of 25-27pips per scalp. Event risk on the pair is limited heading into the weekend with New Zealand Trade Balance figures on tap next week.
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Relevant Data Releases
Other Setups in Play:
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- Webinar: USD Scalps Hinge on CPI- Setups in Play this Week
- GBPNZD Marks Another Failed Attempt- Short Scalps Favored Sub 2.3942
- GBPAUD Putting in a High or Time to Buy?
---Written by Michael Boutros, Currency Strategist with DailyFX
Join Michael for Live Scalping Webinars on Mondays on DailyFX at 12:30 GMT (8:30ET)
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