AUDUSD: Bearish reversal continues
Yesterday’s signals were not triggered, as there was no bearish price action at 0.6969.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Thursday to 5pm Tokyo time Friday.
Long Trade Ideas
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6955 or 0.6940.
Put the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trade Ideas
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.6993, 0.7008, or 0.7035.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
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 the USD was broadly strong, but it may be that the price here begins to stabilize as we had a cluster of three key support levels between 0.6969 and 0.6940. Therefore, I expected this price to consolidate at about 0.6969 and took no directional bias here now.
The bears have actually managed to push the price a little way below 0.6969, and this downwards move seems to be keeping its pace, so it seems I was a little over-optimistic on the bullish side.
The strong medium-term bearish reversal from last week’s high price seems to be continuing, but I do not feel comfortable being short so close to this area of a cluster of support levels.
There is nothing of high importance due today regarding the AUD. Concerning the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.