Talking Points
AUDNZDtesting key near-term support- Short scalps favored sub-1.1175
Updated targets & invalidation levels
Event Risk on Tap This Week
AUDNZD Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
AUDNZD reversal off resistance now testing monthly open support 1.1067
Bias remains weighted to the downside while below slope resistance ~1.1175
Break lower targets support objectives at the monthly low 1.1009 & 1.0910/35
Daily RSI breaking sub-50 for the first time this moth- bearish
Daily momentum in consolidation- look for break for guidance
Limited event risk into end of week
AUDNZD 30min
Notes:The AUDNZD reversal off resistance early this week has now come into key near-term support at 1.055/67. This region is defined by the 61.8% retracement of the advance off the July low & the August open. The immediate short-bias is at risk while above this region with near-term resistance eyed at 1.1105/08 & 1.1145 with our bearish invalidation level now lowered to 1.1175.
Bottom line: we could see some upside from here but we’ll be looking for short triggers into resistance with a break of the lows targeting the monthly opening range low at 1.1009 backed by 1.0955. A quarter of the daily average true range (ATR) yields profit targets of 25-27pips per scalp. Event risk on the pair is limited heading into the weekend with New Zealand Trade Balance figures on tap next week.
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Relevant Data Releases
Other Setups in Play:
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—Written by Michael Boutros, Currency Strategist with DailyFX
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Source: Daily fx