Talking Points
AUDCAD broader bias back in focus after failure to hold above 200DMA
Immediate focus is higher however after rebounding off technical support
Looking to sell rallies while below the December high
AUDCAD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Broader Technical Outlook
AUDCAD fails to hold above 200DMA- break back below Dec high- bearish
Key support 9580/97- bullish invalidation
Subsequent support objectives 9505/14, TL Support & 9410/16
Resistance at 9746- bearish invalidation of scalp bias
Momentum signature at support- Trigger break to offer conviction
AUDCAD Scalp Chart
Notes: The reversal off the 99-handle early this week has put the broader trend back into focus and although the outlook remains weighted to the downside, our immediate focus is the rebound off the 9580/98 support zone. A pending trigger break in momentum offers conviction on near-term long exposure against the weekly low, but traders should remain nimble. Medium-term players are looking for short entries higher up with a rally into subsequent resistance targets with RSI conviction offering favorable short entries.
Bottom line: looking for a lower higher to get back on the short-side, with our immediate focus higher heading into the week’s end. Look for the momentum signature to reset, offering more suitable short-triggers. We’ll be following the progress of this trade and more in DailyFX on Demand.
* 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.
Key Threshold Grid
Entry/Exit Targets
Timeframe
Level
Significance
Resistance Target 1
30min
9630
Soft Resistance / Pivot
Resistance Target 2
30min
9666
23.6% Retracement
Resistance Target 3
30min
9710
38.2% Retracement
Bearish Invalidation
Daily / 30min
9746
50% Fib / Dec High / (200DMA at 9758)
Break Target 1
30min
9782
61.8% Retracement / Weekly ORL
Break Target 2
30min
9802
61.8% Retracement (Off Oct High)
Break Target 3
30min
9832
78.6% Retracement
Break Target 4
30min
9868/70
Soft Resistance / Nov Swing High
Bullish Invalidation
Daily / 30min
9580/97
61.8% Retrace / 50% Extension
Break Target 1
30min
9560
Soft Support / Pivot
Break Target 2
30min
9540
Soft Support / Pivot
Break Target 3
Daily / 30min
9505/15
78.6% Retrace / 61.8% Fib Extension
Break Target 4
30min
9468
88.6% Retracement
Break Target 1
Daily / 30min
9410/16
61.8% Retrace / January Low
Average True Range
Daily (20)
84
Profit Targets 19-21pips
*ORH: Opening Range High
*ORL: Opening Range Low
Other Setups in Play:
Scalping EURNZD Correction- Bias Bullish Above 1.6154
EURAUD Scalps Eye Channel Breakout- Bias Bullish above 1.5020
Scalping the GBPNZD Reversal- Bias Bullish Above 1.9753
Updated 2014 Scalp Targets- USD, EUR, CHF, CAD & Gold in Play
—Written by Michael Boutros, Currency Strategist with DailyFX
For updates on this scalp and more setups follow him on Twitter @MBForex
To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list
Join Michael for a Live Scalping Webinar on Monday on DailyFX and Tuesday, Wednesday and Thursday mornings on DailyFX Plus (Exclusive of Live Clients) at 1230 GMT (8:30ET)
Interested in learning about Fibonacci? Watch this Video
http://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/scalping_report/2014/01/07/Forex_NZDUSD_Scalps_On_Deck-_Watch_8300.html?CMP=SFS-70160000000NbU1AAK
Source: Daily fx
