AUD/CAD Into Key Support- Monthly Opening Range In Focus
- AUDCAD monthly opening range takes shape above key support
- Focus range to start the week 9480-9614
- Updated targets & invalidation levels
Chart Created Using FXCM Marketscope 2.0
Technical Outlook: AUDCAD is testing a technical support confluence around 9480 where the 100% extension of the decline off the 2015 high converges on the median-line extending off that same high and basic channel support. Note that the monthly opening range is also taking shape just above this region and further highlights the 9480-9614 focus range (last week’s low extends into 9452) - look for a break to validate our near-term outlook with the short-bias vulnerable while above the median-line. The pair has also marked some slight divergence into these lows with a pending resistance trigger in play.
Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of SuccessfulTraders” series.
Notes: The pair has been in consolidation since the May 3rd low and until it breaks, we’ll need to treat is as such. A rally surpassing the 2015 low-day close at 9614 would be needed to alleviate near-term pressure with such a scenario targeting 9677 & the upper median-line parallel (blue) / 9692.
A break sub 9452 keeps the immediate short-bias in play targeting 9426 and more significant long-term Fibonacci support at 9377/90 (check daily chart). The economic docket is rather light this week so we’ll be looking for broader market sentiniment and the commodity block for cues here. A quarter of the daily average true range yields profit targets of 24-27pips per scalp. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount!
Check out SSI to see how retail crowds are positioned as well as open interest heading into the tomorrow’s key event risk.
Looking for trade ideas? Review DailyFX’s 2016 2Q Projections!
Relevant Data Releases
Other Setups in Play:
- EUR/USD Approaching Initial Support- Levels to Watch for NFPs
- GBP/USD Reversal Approaching Initial Support Targets
- NZD/USD Fails at 2016 High Ahead of Labor Report- Bearish Sub 7025
- USD/CAD Outside Day Reversal Off Key Support- Long Scalps in Play
- AUD/USD Scalp Targets Ahead of RBA- Watch 7590
---Written by Michael Boutros, Currency Strategist with DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.