Talking Points
AUDNZD responds to key support range
Scalps target near-term recovery /short entries higher
Event risk on tap next week
AUD/NZD Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
AUDNZD responds to key support region ~ 1.0760- bullish invalidation
Long scalps in play- short entries higher up
Key resistance 1.0892- 1.0905 – bearish invalidation
Break below 2014 TL support targets 1.0663 & 1.6120
Weekly opening range in view- break to validate near-term bias
Event Risk Ahead: Australian 3Q GDP & Trade Balance tonight
AUD/NZD 30min
Notes: The pair is holding within the confines of a well-defined descending pitchfork formation off the November highs. We’ve been tracking the rebound off the 1.0746/62 support range since the start of the week with the break above median line today targeting the weekly opening range high at 1.0856 and pitchfork resistance. Key resistance remains at 1.0892-1.0905 with a breach above this threshold needed to invalidate the broader downside bias.
Bottom line: Looking immediately higher while above 1.0760 with a subsequent rally likely to offer more favorable short entries. Caution is warranted heading into Australia’s 3Q GDP report tonight amid expectations for a pickup in the growth rate with the print likely to fuel added volatility in Aussie crosses.
* 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.
Relevant Data Releases
Other Setups in Play:
EURJPY Correction to Favor Short Scalp Entries Sub-1.48
—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 on Mondays on DailyFX and Tuesday – Thursdays on DailyFX Plus (Exclusive of Live Clients) at 13:30 GMT (8:30ET)
Interested in learning about Fibonacci? Watch this Video
Source: Daily fx
