AUDUSD: Short-term bearish momentum
Yesterday’s signals were not triggered, as there was no bullish price action at 0.6955.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered prior to 5pm Tokyo time Wednesday.
Long Trade Ideas
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6903 or 0.6857.
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 0.6940, 0.6955, or 0.6975.
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 it looked as if the price was going to move down again over the short-term after selling off from a level close to 0.7000 after a bullish retracement. I saw a likely scenario as a continued move down to the 0.6955 area, where a long trade opportunity might arise to play the range again.
This was a good call as the price fell to 0.6955 where there was a small and unconvincing bounce, before the price turned bearish again and fell to further lows. I was right about the short-term direction.
The picture is more bearish now, but the price is still well within its long-term range, and it would not be surprising if the price found support even before 0.6903 was reached.
Over the very short-term, at the time of writing, it looks as if the price will move to still lower prices.
There is nothing of high importance due today regarding the AUD. Concerning the USD, the Chair of the Federal Reserve will be making a minor speech at 1:45pm London time.