I have been actively scalping the AUDUSD setup highlighted in Yesterday's Scalp Report.

AUDUSD- As noted, we adopted a bullish bias into the close of trade in New York yesterday with the aussie coming into resistance target 1 at 1.0335. The pair has continued to oscillate in the range between the 100% and 123.6% Fibonacci extensions at 1.0335 and 1.0308 respectively with a break of this range offering further conviction on an intra-day bias. I'm flat here as I'm not expecting too much in Friday trade with the setup having already yielded a strong performance this week.

Look for a key break below the weekly low to put 1.0265-1.0270 into focus with a break above the overnight highs at 1.0348 eyeing subsequent resistance targets.

Daily Chart Update

AUDCAD - The pair has continued to hold just below Break Target 2 at the 61.8% retracement at 1.0340 with price action offering little conviction on a run down to our subsequent target at the 200-day moving average 1.0310. This setup has been rather quiet over the last 24-hours with no trades taken since the initial short into 1.0340.

A move lower puts into focus the 100-day moving average at 1.0310, the monthly lows at 1.0280 and the 50% retracement at 1.0260. Only a break back above 1.0385 invalidates our near-term bias.

Setup highlighted in Tuesday's Report

EURAUD - My analyst pick yesterday cited, that, "a favorable setup is now coming into focus on the EURAUD with the pair moving into a resistance zone between key Fibonacci levels at 1.2360 and 1.2410. Shorts in this region are favored against the confluence of channel resistance and the 50-day moving average at 1.2465." Shorts were triggered yesterday at 1.2368 with limits booking profit at 1.2325 in overnight trade. Short scalps into near-term rallies are still favored with medium-term, "targets eyed at 1.2215 and the monthly lows at 1.2155."

EURAUD Chart (posted Yesterday)

Although the US open may offer some near-term scalps, I'll likely be flat heading into the weekend as market attention remains fixated on the fiscal cliff debate and the EU's meeting on Greece next week.

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

To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list

For updates on this setup and more follow him on Twitter @MBForex

Review yesterday's Scalp Webinar for further insights and trade setups

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