- AUDUSD convene contrast multi-month insurgency range- Immediate long-bias during risk below
- Updated targets cancellation levels
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Technical Outlook:AUDUSD is probing a pivotal insurgency operation we’ve been tracking for a past few months during 7735/56– this segment is tangible by simple trendline resistance, a 88.6% retracement of a Apr decrease a 2016 high-day tighten and has continued to top rallies in Aussie given August. The concentration is on this pivotal operation streamer into a tighten of a month with a tighten above indispensable to symbol a some-more poignant dermatitis eventuality in a pair. That said, a evident allege stays during risk while next this threshold with halt support seen during a monthly open 7656.
Notes:A demeanour during a intraday draft highlights a near-term slope imagining off a monthly lows with a weekly opening operation now holding figure only next a 7735/56 insurgency zone- demeanour for a mangle with a pierce sub-7651/56 indispensable to symbol a some-more suggestive improvement in a pair. Such a unfolding targets successive objectives during 7620 7591. Broader bullish cancellation rests during 7542/47 (3/3 pitch low / 200-day relocating average).
A crack topside crack still has to contend with a Nov high during 7778– though over that, it should be well-spoken sailing to 7835. From a trade standpoint, I’ll be looking for depletion around these levels with a deeper pullback to offer some-more auspicious prolonged opportunities into constructional support – a initial of that would be a monthly open. Keep in mind anniversary tendencies preference USD debility (i.e. AUDUSD strength) streamer into a start of Apr trade.
A entertain of a daily normal loyal operation (ATR) yields distinction targets of 17-22pips per scalp. Most of a eventuality risk this week will come from a USD with a recover of a Feb Durable Goods Orders on Friday highlighting a mercantile docket.
- A outline of a DailyFX Speculative Sentiment Index (SSI) shows traders are net-short AUDUSD- a ratio stands during -2.28 (30.5% of traders are long)- bullish reading
- Traders have been net-short given Jan 9th when Aussie was trade nearby 7182- Since then, a span has rallied 7.7%
- Long positions are 4.5% aloft than yesterday and 9.9% reduce from final week
- Short positions are 5.2% aloft than yesterday and 19.0% aloft from final week
- While SSI continues to broadly indicate higher, it’s value observant that a new build in open seductiveness liberation in SSI off a monthly lows advise a evident bullish disposition is during risk- generally as prices press pivotal resistance.
Relevant Data Releases
Other Setups in Play:
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– Written by Michael Boutros, Currency Strategist with DailyFX
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