Talking Points
EURAUD responds to key support 1.5020/57- bullish invalidation
Weekly opening range breach shifts focus higher
Event risk on tap from Australia & Eurozone over the next 48hours
EURAUD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Broader Technical Outlook
EURAUD responds to key support zone 1.5020/56- Constructive above this mark
Near-term focus on channel resistance- Breach targets 1.5448/53, 1.5596, 1.5778
Support break invalidates scalp bias- support targets at 1.4823/73 (December Low)
Momentum signature well supported ahead of 40-threshold-bullish(Topside trigger pending)
Key Event Risk Ahead: Australian Employment report Wednesday, Eurozone CPI on Thursday
EURAUD Scalp Chart
Notes: We’ve been following the progression of this trade closely in DailyFX on Demand and the initial reaction off the 1.5020/56 key support zone and a subsequent break of the weekly opening range high has shifted our scalp focus to the topside on pair. The pair now looks for convictions on the breach above channel resistance with a move past/close above 1.5313 validating the breakout.
It’s worth noting that the monthly opening range low did give out yesterday but the snap-back of the recovery back within the initial range and a breach above the weekly high has me discounting the initial break. A support RSI trigger is pending and if triggered will take us out long-exposure in the near-term. Such a scenario shifts our immediate focus lower and we’ll let the oscillator reset with a pullbacks to offer favorable long triggers. Bottom line: looking to buy dips/breaks of resistance while above 1.5020.
* 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
1.5278
76.4% Retracement
Resistance Target 2
Daily / 30min
1.5313
50% Fibonacci / Pivot
Bearish Invalidation
Daily / 30min
1.5354/79
Last Week’s High / 61.8% Retrace
Break Target 1
30min
1.5420
Soft Resistance / Pivot
Break Target 2
Daily / 30min
1.5448/54
Fib Confluence / May 2010 High / Jan ORH
Break Target 3
30min
1.5475
78.6% Retracement
Break Target 4
30min
1.5531
88.6% Retracement
Break Target 5
Daily / 30min
1.5596
2014 High
Break Target 6
Daily
1.5778
61.8% Fib Extension
Support Target 1
30min
1.5240/43
23.6% / 61.8% Exts / TL Dating 12/27
Support Target 2
30min
1.5212
Weekly ORH / Pivot
Support Target 3
30min
1.5170
38.2% Fib Extension
Support Target 4
30min
1.5114
50% Fib Ext / Jan 3 Low / Pivot
Bullish Invalidation
Daily / 30min
1.5020/57
61.8% & 1.618% Fib Exts / Jan Low
Break Target 1
30min
1.4975 – 1.5005
38.2% Retrace / 78.6% Ext
Break Target 2
Daily
1.4948
50DMA / Pivot
Break Target 3
Daily /30min
1.4873
100% Fib Extension
Average True Range
Daily (20)
135
Profit Targets 31-34pips
*ORH: Opening Range High
*ORL: Opening Range Low
Other Setups in Play:
Scalping the GBPNZD Reversal- Bias Bullish Above 1.9753
NZDUSD Scalps On Deck- Watch 8300
AUDUSD Scalps Eye Key Resistance- Weekly Opening Range in Focus
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
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Source: Daily fx