EURAUD Daily Chart
ChartCreated Using FXCM Marketscope 2.0
Technical Outlook
Weekly/Daily momentum signatures look to be turning over
Multiple RSI trigger breaks pending offering conviction on near-term correction
June top (so-far) roughly 20-pips from the highest weekly close of 2011 (1.4212)
Supportive price action in EURUSD (approaching key res) & AUDUSD (rebound off key support)
Initial objective range 1.3760-1.3798
Secondary objectives 1.3595-1.3615 and 1.3465/70
Topside breach targets 1.4334 (2011 high) and 1.44
Key Events Ahead: Eurozone 1Q employment tomorrow
EURAUD Scalp Chart
Scalp Notes: Bottom Line: Although our longer-term metrics continue to point higher, recent price action suggests our medium-term focus should be lower towards 1.3760-1.38. A cleanly formed descending channel may continue to guide price action with rallies into 1.4035 to be sold. A break (daily close) above this mark invalidates our near-term bias. RSI has turned bearish since the start of the week with rallies into the 60-threshold likely to offer clear short-scalp triggers. The range is rather large here and profits should be meticulously booked at the targeted ATR percentage or subsequent scalp level- whichever comes first.
*We will remain flexible with our bias with a break above 1.1.4035 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
1.3950
61.8% Fib Ext / US Session High
Resistance Target 2
30min
1.3993
50% Fib Extension
Bearish Invalidation
30min
1.4030/35
38.2% Fib Ext / Sunday Open
Break Target 1
30min
1.4085
23.6% Fib Extension
Break Target 2
Daily / 30min
1.4165/70
Wednesday Swing High
Break Target 3
30min
1.4200
Big Figure / Pivot
Break Target 3
Daily / 30min
1.4238
Monthly High
Support Target 1
30min
1.3814
Channel Support / 100% Fib Ext
Bullish Invalidation
Daily / 30min
1.3760/65
23.6% Retrace / Pivot Last Week
Break Target 1
30min
1.3715
Soft Support / Pivot
Break Target 2
30min
1.3675
138.2% Fib Ext / Soft Support
Break Target 3
30min
1.3635
150% Fib Ext / Soft Support
Break Target 4
Daily / 30min
1.3595-1.3615
23.6% Retracement / 161.8% Ext
Break Target 5
30min
1.3550
173.2% Fib Ext
Break Target 6
30min
1.3500
Big Figure / Soft Support
Break Target 7
Daily / 30min
1.3465/70
38.2% Retracement
Average True Range
Daily
186
Profit Targets 40-45pips
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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