AUDNZD Testing 2014 Range Highs- 1.09 Key Resistance

Talking Points

• 
  AUDNZD testing topside of 2014 consolidation pattern
  


• 
  Weekly opening range bullish
  


• 
  Limited event risk into the close of May
  

AUDNZD Daily Chart

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

• 
  AUDNZD testing key 2014 resistance 1.0882- 1.0906
  


• 
  Breach targets resistance objectives at 1.0946, 1.0985 & 1.1027/35
  


• 
  Key support 1.0738, 1.0675
  


• 
  Daily RSI resistance trigger break- bullish
  

AUDNZD Scalp Chart

Notes: The May opening range broke to the topside on the 8th with the subsequent rally now taking the AUDNZD into a key resistance range between 1.0882 -1.0906. The pair has largely been in a well-defined range since the start of 2014 with price now testing the topside of the broader consolidation pattern dating back to the January low.

Although the weekly opening range did break to the topside, the immediate focus is against this resistance range with a topside breach needed to shift the broader focus into subsequent breakout targets. Bottom line: we’ll continue to trade the 2014 range while noting that proximity to critical resistance (bearish invalidation) just higher at 1.0906. A break below the weekly opening range low would add further conviction on the short-side of the trade eyeing the 1.0738 support objective. 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

*ORH: Opening Range High

*ORL: Opening Range Low

Other Setups in Play:

• 
  GBPUSD Scalps Selling Rallies into May Range Lows- Key Support 1.6750
  


• 
  GBPNZD Scalps Target May Opening Range Break- Bullish Above 1.96
  


• 
  AUDUSD Scalps Target Channel Break- Bearish Sub 9300
  


• 
  GBPAUD Scalps Target Key Resistance- Bullish Above 1.7920
  


• 
  USDOLLAR, Gold Setups Target Key Resistance- Breakouts Pending
  


• 
  NZDJPY Monthly Opening Range Trade- Bearish Sub 89.50
  

—Written by Michael Boutros, Currency Strategist with DailyFX

For updates on this scalp and more setups follow him on Twitter @MBForex

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AUDNZD Testing 2014 Range Highs- 1.09 Key Resistance