AUDUSD analysis: poised to test low at 0.6865
Yesterday’s signals were not triggered as the bearish price action took place just above 0.6091.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time Thursday until 5pm Tokyo time Friday.
Long Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6827.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trades
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.6891 or 0.6936.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
AUD/USD Analysis
I wrote yesterday that although there is a bearish long-term trend, it did not look as though the price was ready to resume its earlier downwards movement today, so standing aside was probably the best approach today.
I was wrong as the price did turn bearish again and was effectively held by the new lower resistance level at 0.6891. the price now looks heavy and sees very likely to test last week’s low, which is a bearish sign.
I would therefore take a bearish bias today if the price can trade below last week’s low for a couple of hours consecutively. Note the NZD is even weaker than the AUD, so NZD/USD short may be a better alternative trade.
There is nothing of high importance due today concerning either the AUD or the USD.