AUDUSD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
RBA interest rate cut offered the catalyst needed break sub-1.0220/26 – Bearish below this mark
May opening range puts a heavy tone for the month
Break below 1.0155 eyes primary objective range 1.0100 – 1.0115
Secondary Objectives at 1.0025, 9980
Daily RSI now sub 40 for the first time since early March (we’ll want to clear those lows in RSI)
Break above key resistance 1.0220/26 risks a run on 1.0295, 1.0320
Main events to watch this week: Australia employment data tonight
AUDUSD Scalp Chart
Scalp Notes: Bottom Line: Staying bearish below 1.0227 although we may still have some further upside in the near-term as 1.0155-1.0160 represents a confluence of multiple key Fibonacci levels. Break below this threshold offers conviction on short scalps into primary objective range. The 30min RSI signature has remained bearish since the start of the week with multiple failed attempts at a breech above the 60-theshold. (Note that breech above RSI resistance would suggest larger correction higher before the resuming the broader downtrend)
*We will remain flexible with our bias with a break above 1.0226 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
Entry/Exit Targets
Timeframe
Level
Significance
Resistance Target 1
30min
1.0204
50% Fib Extension
Bearish Invalidation
30min / Daily
1.0220/26
61.8% Ext / 76.4% Retrace
Break Target 1
30min
1.0246
38.2^% Fib Extension
Break Target 2
30min
1.0270
Soft Resistance / Pivot
Break Target 3
Daily
1.0293
61.8% Retracement
Break Target 4
Daily
1.0320
38.2% Retracement
Support Target 1
30min
1.0180
Soft Support / Pivot
Bullish Invalidation
Daily / 30min
1.0155 – 1.0161
61.8% & 100% Exts
Break Target 1
30min
1.0114 – 1.0120
March Low / 1.236% Ext
Break Target 2
30min
1.0100
78.6% Fib Extension
Break Target 3
30min
1.0077
1.50% Fib Extension
Break Target 4
30min
1.0055
1.618% Fib Extension
Break Target 5
Daily
1.0025
100% Fib Extension
Average True Range
Daily
78
Profit Targets 17-19pips
Other Scalp Setups in Play: GBPUSD Short Scalps Target Objective at 1.54 – BoE on Tap
Reviews today’s Scalp Webinar for further insights and current trade setups
For updates on this scalp and more setups follow him on Twitter @MBForex
—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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Source: Daily fx