AUDUSD: Bearish momentum testing 0.6905
Yesterday’s signals were not triggered, as there was no bullish price action at either 0.6955 or 0.6940.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time Monday to 5pm Tokyo time Tuesday.
Long Trade Ideas
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6903 or 0.6857.
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 Trade Ideas
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.6940 or 0.6955.
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 last Thursday that the strong medium-term bearish reversal from last week’s high price seemed to be continuing, but I did not feel comfortable being short so close to this area of a cluster of support levels. This was unfortunately as the price has continued to fall quite strongly, with the Australian Dollar now arguably the weakest major global currency. The U.S. Dollar remains strong. The price has been held up by the support at 0.6903 for several hours, so it seems obvious this will be today’s pivotal point. If the price breaks firmly below that level and closes below it for two consecutive hours on healthy volatility, I would take a bearish bias on this currency pair.
There is nothing of high importance due today regarding either the AUD or the USD.