AUD/USD is Constructive - Threatens Resistance Break
- AUD/USDconstructive above weekly open
- Updated targets & invalidation levels
Chart prepared by Michael Boutros
Broader Technical Outlook: Aussie rebounded off confluence median-line support yesterday on a failure to break below the monthly opening range low. The trade remains constructive while above the monthly / weekly open at 7448/50 near-term resistance eyed at the confluence of the 61.8% retracement of the April decline and the upper median-line parallel extending off the yearly high at 7571. Subsequent topside targets eyed at 7644 & the 78.6% retracement at 7687.
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Notes: We alerted SB Trade Desk clients last night as Aussie was approaching confluence support at 7424 where basic slope support converges on the 50% retracement of the post-Brexit advance. The subsequent rally has taken out initial topside targets with the advance now once again approaching the 61.8% retracement of Brexit decline at 7516.
Momentum maybe a little stretched here with a pullback likely to offer more favorable long-entries while above the weekly open targeting 7571, the April low-day close at 7590 and the upper median-line parallel / 7644. A quarter of the daily average true range (ATR) yields profit targets of 26-30 pips per scalp. Added caution is warranted heading into the end of the week with U.S. Non-Farm Payrolls likely to fuel increased volatility in USD crosses. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount.
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Relevant Data Releases
Other Setups in Play:
- Gold, USDOLLAR Primed for Volatility on FOMC Minutes
- USD/CAD Constructive Above Weekly Open- Key Resistance 1.3020
- EUR/USD Hits First Target- Key Resistance Stands at 1.1230
- Near-term Setups in NZD, CAD, EUR & USDOLLAR into the July Open
- NZD/USD Rally at Risk Ahead of ISM
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---Written by Michael Boutros, Currency Strategist with DailyFX
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