AUDUSD at Pivotal Resistance- Scalping the 1.05 Barrier

AUDUSD Daily Chart

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

Rally off the 38.2% retracement yesterday and an RSI reversal ahead of 50 suggests momentum may be supportive of further advances
Note daily RSI remains poised for a breach above the 60-threshold= bullish
Testing Critical Resistance at 1.0495-1.05 region- Topside Breach eyes objectives at 1.06 and 1.0638
Key Support 1.04- Break targets 1.0350 and 1.0260

EURUSD Scalp Chart

Scalp Notes: Bottom Line: 1.05 is Paramount- Topside break on a close basis risks further advances into our resistance targets. The RSI signature since the Sunday open remains constructive with only a dip below the 40-threshold suggesting that the rally may have run its course.

*We will remain flexible with our bias with a break above 1.05 eyeing subsequent resistance targets. It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases. Use this app to distinguish the various trade sessions.

Key Threshold Grid: EURUSD

Entry/Exit Targets

Timeframe

Level

Significance

Bearish Invalidation

Daily

1.0495-1.05

61.8% Ext/ 2 Week High

Break Target 1

30min

1.0538

50% Fib Ext

Break Target 2

30min

1.0560

Soft Resistance

Break Target 3

30min

1.0583

61.8% Fib Extension

Break Target 4

30min

1.0600

Big Figure

Break Target 5

Daily

1.0620

50% Retracement

Break Target 6

Daily

1.0645

50% Fib Ext

Support Target 1

30min

1.0465

78.6% Retracement

Support Target 2

30min

1.0440

61.8% Retracement

Support Target 3

30min

1.0420

50% Retracement

Bullish Invalidation

30min

1.0400

38.2% Retracement

Break Target 1

30min

1.0385

100% Fib Extension

Break Target 2

30min

1.0350

38.2% Retracement

Break Target 3

30min

1.0329

1.50% Fib Extension

Average True Range

Daily

65

Profit Targets 15-17pips

For updates on this scalp and more setups attend Michael’s Scalp Webinars or follow him on Twitter @MBForex

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—Written by Michael Boutros, Currency Strategist with DailyFX

To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list

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