Talking Points
- AUDJPY near-term rebound in focus ahead of key event risk
- Updated targets & invalidation levels
- Event Risk on Tap This Week
AUDNZD Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
- AUDJPY rebounding off multi-year slope line- Consolidating below slope resistance
- Near-term risk is higher while above 83.00- broader bullish invalidation
- Topside objectives 84.72 & 86.12/28 (key near-term resistance)
- Break below TL support puts larger downtrend back in focus targeting 81.75 & 80.17
- Daily RSI support/resistance RSI triggers pending- break to offer guidance
- Key Event Risk Ahead: Japanese Jobless rate tonight and U.S. NFP tomorrow
AUDNZD 30min
Notes: AUDJPY is trading within the confines of an ascending median-line formation off last week & this week’s lows with the pair coming into confluence support today at the 84-handle. A break below this mark invalidates the immediate topside bias with such a scenario targeting 83.42 & key support into the 83.05. Note that the 2011 long-term slope line converges with basic TL support off the September lows at this level (check daily chart).
Bottom line: looking higher while within this formation but ultimately we’d be looking to sell a rally up towards the upper median-line parallel. Interim resistance is eyed at the 2015 low-day close at 84.72 with a breach above targeting subsequent objectives at 85.15, 85.70 & key resistance at 86.04/13. A quarter of the daily average true range (ATR) yields profit targets of 33-35 pips per scalp. Caution is warranted heading into tomorrow’s U.S. employment report with the release likely to fuel added volatility in risk sensitive pairs.
For updates on this scalp and more setups throughout the week subscribe to SB Trade Desk
Relevant Data Releases
Other Setups in Play:
- AUDNZD at Critical Inflection Point- Scalps Target Weekly Opening Range
- Scalping EURUSD Ahead of NFP- Long Bias Favored Above 1.12
- Webinar: USD Fails at Resistance- Scalping Sept. Range Ahead of NFP
- Gold at Critical Resistance- Long Scalps Vulnerable Sub 1155
- GBPJPY Reversal Setup- Short Scalps Eye 182
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex contact him at 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 12:30 GMT (8:30ET)
Struggling with your strategy? Here’s the number one mistake to avoid
