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AUDNZD Scalps Targets Key Inflection Range - 1.1020 Critical Support
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Talking Points
AUDNZD weekly opening range takes shape above key support
Major inflection zone at 1.1020/35
AUD/NZD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
AUDNZD at key support zone 1.1020/35- bullish invalidation
Support break targets objectives at 1.0957, 1.0878-1.0906, 1.0826
Resistance at weekly opening range high / Fibonacci confluence 1.1100
Breach targets 1.1160, 1.1200, 1.1267/96- bearish invalidation
Daily RSI straddling 50- neutral
Look for momentum rebound ahead of 40 to remain constructive
Limited event risk heading into weekend.
AUD/NZD 30min Chart
Notes: The AUDNZD has been trading within a well-defined Andrew’s Pitchfork off the September high with the weekly opening range taking shape just above a key infection region at 1.2023/35. Note that within this support zone rests the bisector of a broader ascending pitchfork formation off the 2014 low and as such, we will reserve this threshold as our near-term bullish invalidation level. The Sunday gap-open has been filled and the play here is a break out of the gap-range which is define by 1.1022 – 1.1100.
Bottom line: looking for a break of the weekly opening range with our near-term bias favoring buying dips while above 1.1022/35 with a breach above 1.11 offering further conviction for long-side exposure. Note that the average true range has remained rather tight here so we’ll increase the profit targets to 1/3 of the daily ATR- this puts us at approximately 22pips per scalp.Event risk is limited heading into the weekend and we’ll look for broader market sentiment for guidance. 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 | 1.1075 | Soft Resistance / Pivot |
Bearish Invalidation | Daily / 30min | 1.1100 | Weekly ORH / 61.8% Ext |
Break Target 1 | 30min | 1.1125 | 38.2% Retracement |
Break Target 2 | Daily / 30min | 1.1157/63 | 100% Ext / 50% & 61.8% Retracement(s) |
Break Target 3 | Daily / 30min | 1.1190/99 | August Low / 61.8% Retracement |
Break Target 4 | 30min | 1.1235 | 78.6% Retracement |
Break Target 5 | Daily / 30min | 1.1263/66 | 1.618% Ext / 88.6% Retracement |
Bullish Invalidation | Daily / 30min | 1.1023/35 | 100% Ext / 38.2% & 50% Retracement(s) |
Break Target 1 | Daily / 30min | 1.10 | S1 Monthly / 50DMA |
Break Target 2 | 30min | 1.0982 | May High / Soft Support |
Break Target 3 | Daily / 30min | 1.0955/57 | 50% Retracement |
Break Target 4 | 30min | 1.0925 | August Close Low / S2 Monthly |
Break Target 5 | Daily | 1.0878- 1.0906 | 38.2% & 61.8% Retrace(s) / 1.618% Ext / 100DMA |
Daily (20) | 64 | Profit Targets 19-22pips | |
*ORH: Opening Range High
*ORL: Opening Range Low
Other Setups in Play:
AUDJPY Outside Reversal Day- Scalps Favor Buying Dips Above 96.38
EURUSD Short Bias at Risk Ahead of FOMC- 1.29 Bullish Invalidation
AUDCHF Monthly Opening Range Setup- Scalps Target Key Support
AUDUSD Scalps Target Head and Shoulders Break- Bearish Sub 9236
---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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