AUDUSD: Ranging from 0.6950 to 0.7050
Last Thursday’s signals were not triggered, as there was no bullish price action when the support was reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken before 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 0.6955 or 0.6940.
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 0.7002, 0.7029, or 0.7047.
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 I thought the price was more likely to reach the major round number at 0.7000 before it hit 0.7047 again, and if there were a strong bullish bounce at 0.7000, it would probably be a good long trade. I was correct as the price quickly reached 0.7000 and cut through the round number like a hot knife through butter, which was a bearish sign, indicating a sharp fall down to almost 0.6955.
There is a medium-term range between 0.6950 and 0.7050 and it looks now as if the price is going to move down again over the short-term after selling off from a level close to 0.7000 after a bullish retracement.
I see a likely scenario as a continued move down to the 0.6955 area, where a long trade opportunity might arise to play this range again.
There is nothing of high importance due today regarding the AUD or the USD.