DailyFX.com -

Talking Points

  • AUDCHF testing 2014 high
  • Opening range / Sunday gap setup to validate scalp bias

AUDCHF Daily Chart

AUDCHF Gap Setup- 8545 Resistance Critical

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • AUDCHF gaps into 2014 highs / key resistance 8534/45- bearish invalidation
  • Breach targets resistance objectives at 8583, 8638 & 8700
  • Support at former TL resistance, channel support, 8353/60- bullish invalidation
  • Ongoing momentum divergence warns of risk for correction lower
  • Daily RSI resistance trigger pending- break would be bullish
  • Limited event risk until month’s end

AUDCHF 30min Chart

AUDCHF Gap Setup- 8545 Resistance Critical

Notes: Divergence along the highs on the intra-week chart above followed by two support-trigger breaks in momentum warns of a possible turnover in the AUDCHF as we test the yearly highs / key resistance at 8544/48. That said, the pair has now filled the Sunday-open gap and we’ll look to play the break of this range with a move below trendline support eyeing subsequent support targets.

Bottom line: the broader topside bias can only be invalidated with a break sub 8353/60: that said, near-term the pair remains at risk for a pullback while below 8545 and we’ll look for a break of the weekly opening range / Sunday gap-fill for validation of our immediate scalp bias. Ultimately, if such a pullback does materialize, it may offer more favorable long entries closer to the 84-handle. Look for the breach above 8545 to put the longs back in play with a break of the daily RSI resistance trigger offering further conviction on 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 16pips per scalp. There is limited event risk out of Australia and Switzerland heading into the close of August trade and as such we’ll look for broader market sentiment to drive volatility. 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



Technical Relevance

Resistance Target 1



Soft Resistance / Pivot

Bearish Invalidation

Daily / 30min


July High / 1.618% Ext / 78.6% Retrace / Weekly ORH*

Break Target 1



38.2% Retracement

Break Target 2



Psychological Barrier / Approximated TL Res

Break Target 3



88.6% Retracement

Break Target 4



R2 Monthly Pivot

Bullish Invalidation

Daily / 30min


38.2% Retrace / Weekly ORL* / TL Support

Break Target 1



6/13 High / 50% Retracement

Break Target 2



61.8% Retracement

Break Target 3



78.6% Retracement / July ORH*

Break Target 4



August 15th low

Break Target 5

Daily / 30min


August Low / 100% Ext

Average True Range

Daily (20)


Profit Targets 15-17pips

*ORH: Opening Range High

*ORL: Opening Range Low

Other Setups in Play:

  • Make or Break Time for USDCHF- Rally Vulnerable Sub 9133
  • AUDJPY Targets Key Resistance - Shorts Favored Sub 96.00
  • USDCAD Opening Range Play- Key Support in Focus Ahead of Jobs Data
  • GBPAUD Opening Range Break - Selling Rallies Sub August High
  • GBPUSD Shorts at Risk Above 1.68 Heading Into BoE, Inflation Data
  • NZDUSD at Key Support and August Range Low- Exhaustion or Break?
  • EURUSD Risks Correction Into August Open- 1.3372 Key Ahead of ECB
  • USDOLLAR Vulnerable Heading Into NFPs- August Setups in Focus
Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!