Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
AUDUSD Rally Accelerates Into Resistance- 7037 in Play

AUDUSD Rally Accelerates Into Resistance- 7037 in Play

Michael Boutros, Strategist

Talking Points

AUDUSD Daily

Chart Created Using FXCM Marketscope 2.0

Technical Outlook: AUDUSD rebounded off the median-line extending off the December high today with the advance now approaching key near-term resistance at 7030/37. This level is defined by the 100% extension of the December decline, the November low-close and the previous swing highs made earlier this month. Note that former channel support comes in just ahead of this range and may also offer some near-term resistance.

Bottom line- although we may get some pullback from here, the broader trade remains constructive while above 6906/10 where the September low, the 61.8% retracement of the advance and the median-line converge. A breach of the highs targets 7105 and a critical resistance confluence at 7136/39. Ultimately we’ll be looking for this rally to offer more favorable short entries.

Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of Successful Traders” series.

AUDUSD 30min

Notes: Aussie has continued to trade within the confines of an embedded ascending median-line formation off the monthly lows with the advance now eyeing the 7031/38 resistance confluence. Note that this level also coincides with the weekly opening range high & a break above is needed to keep the long-bias in play targeting subsequent resistance objectives at 7075, 7105 & 7136.

Interim support rests at 6956 backed by backed by our near-term bullish invalidation level at 6936. A break sub-6906/10 warrants short exposure (look to sell rallies) with such a scenario targeting 6853/59 & the monthly low at 6826. A quarter of the daily average true range (ATR) yields profit targets of 25pips per scalp. Added caution is warranted heading into Australia & U.S. event risk this week with Aussie CPI data tonight & the FOMC interest rate decision tomorrow likely to fuel volatility in USD & AUD crosses.

For updates on this setup and more trades throughout the week, subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount!

Relevant Data Releases

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or ClickHere to be added to his email distribution list.

Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES