AUDUSD Rebound Faces Initial Hurdle- Longs Scalps Favored Above 7365

DailyFX.com -

Talking Points

• AUDUSD rebound testing initial resistance (bearish invalidation)

• Updated targets & invalidation levels

• Event Risk on Tap This Week

AUDUSD Daily

AUDUSD Rebound Faces Initial Hurdle- Longs Scalps Favored Above 7365

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

• AUDUSD breaks previous week’s high for the first time since June- constructive

• Rally now testing initial resistance at multi-month median-line parallel (~7425)- bearish invalidation

• Breach targets resistance objectives at 7468, 7540 & 7590-7613

• Support at weekly ORL 7260 backed by 7177 & key support into 7130/35

• Daily RSI resistance trigger breach- bullish

• Key Event Risk Ahead: Australian Employment Tomorrow and U.S. Non-Farm Payrolls on Friday

AUDUSD 30min

AUDUSD Rebound Faces Initial Hurdle- Longs Scalps Favored Above 7365

Notes: Aussie pushed through last week’s highs on the back of the RBA interest rate decision with the rally now testing a near-term resistance confluence into the 7425 zone. Intraday momentum has broken to its highest levels since early June with an ascending median-line formation off last week’s lows keeping long-scalps in focus while above the ML / last week’s highs at 7366. A breach above highlighted resistance would suggest a larger-scale reversal may be underway with such a scenario targeting subsequent objectives at 7468/74 & 7532/40.

Bottom line: we’ll be looking to buy pullbacks / resistance triggers while above the ML with a break below the weekly opening range low needed to shift the focus back to the short-side targeting key support at 7177 & 7130/35. A quarter of the daily Average True Range yields profit targets of 22-25pips per scalp. Caution is warranted heading into Key Australian & U.S. event risk this week with employment data likely to fuel added volatility in Aussie & Dollar crosses.

For updates on this scalp and more setups throughout the week subscribe to SB Trade Desk

Relevant Data Releases

AUDUSD Rebound Faces Initial Hurdle- Longs Scalps Favored Above 7365

Other Setups in Play:

• NZDUSD Breakout or Fake-Out? Key Levels to Know Ahead of FOMC, US GDP

• Webinar: Key USD Scalp Levels For Month End- GBP Crosses in Focus

• GBPJPY Defends Monthly Open- Weekly Range Break to Validate Long Bias

• Webinar: Euro Faces May Lows- USD Outlook Murky at Three Month Highs

• Key EURUSD Levels to Know Ahead of the ECB, US CPI

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex,contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX at 12:30 GMT (8:30ET)

Interested in learning about Fibonacci? Watch this Video

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.