Talking Points
AUDUSD breaks below technical support
May opening range low in focus 9200
Limited event risk into weekend
AUDUSD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
AUDUSD breaks below key support / 2014 TL at 9300- bearish
Key support objective now 9200/17- bullish invalidation
Break targets 9155/70, 9080/93
Breach above 9330 (bearish invalidation) targets 9405, 9460
Daily RSI break below 2014 TL support trigger- bearish
Event Risk Ahead: FOMC Minutes tomorrow
AUDUSD Scalp Chart
Notes: The AUDUSD has broken below key support at 9300 with the move invalidating a larger channel support structure dating back to the January 2014 low. Our focus remains weighted to the short-side while below this level while noting key support at 9200/17. This region is defined by the April & May lows and a confluence of key Fibonacci retracements/extensions dating as far back as 2010.
Bottom line: look to sell rallies while below 9300 with only a breach above 9330 invalidating our near-term directional bias. Use caution heading into the release of the FOMC minutes tomorrow with USD crosses likely to see some added volatility on the release. Follow the progress of this trade setup and more throughout the trading week with 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
Technical Relevance
Resistance Target 1
30min
9271
23.6% Retracement
Bearish Invalidation
Daily / 30min
9294 -9302
100% Ext / 61.8% Retrace
Break Target 1
Daily / 30min
9325/37
61.8% Ext / 61.8% Retracement
Break Target 2
30min
9376
Weekly ORH
Break Target 3
Daily / 30min
9405
May High / 78.6% Retracement
Break Target 4
Daily
9460
2014 High
Support Target 1
30min
9243/48
78.6% Retracement / 1.618% Ext
Bullish Invalidation
Daily / 30min
9208/17
May & April ORL / 50% & 61.8% Rtrce / 78.6% Ext
Break Target 1
Daily / 30min
9155/70
38.2% Retrce / 2.618% & 100% Ext / 200DMA
Break Target 2
30min
9111
Soft Support / Pivot
Break Target 3
Daily
9079
38.2% Retracement / Jan, Feb High(s)
Break Target 4
30min
9060
50% Retracement
Break Target 5
30min
8994
Soft Support / Pivot
Break Target 6
Daily
8965
61.8% Retracement
Average True Range
Daily (20)
59
Profit Targets 14-16pips
*ORH: Opening Range High
*ORL: Opening Range Low
Other Setups in Play:
GBPAUD Scalps Target Key Resistance- Bullish Above 1.7920
USDOLLAR, Gold Setups Target Key Resistance- Breakouts Pending
GBPUSD Risks Major Support Break Ahead of Key UK/US Data- 1.6820 Key
NZDJPY Monthly Opening Range Trade- Bearish Sub 89.50
EURAUD Scalp Setup Favors Selling Rallies Sub-1.5030
—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 Live Scalping Webinars Wednesday and Thursday this week on DailyFX Plus (Exclusive of Live Clients) at 15:30 GMT (11:30ET)
Interested in learning about Fibonacci? Watch this Video
Source: Daily fx
