AUDUSD: 0.6746 area remains pivotal
Last Thursday’s signals were not triggered, as none of the key levels identified then were reached yet.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trade Ideas
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6787, 0.6800, or 0.6829.
- Place 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.
Long Trade Idea
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6746.
- Place 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.
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 still saw the support level at 0.6746 as valid and in play and I was prepared to try to trade either a breakdown or a bullish reversal if it was hit again that day.
It was never reached. In fact, the price has barely moved since last Thursday. Today will probably be a typically quiet Monday but the price is likely to spring into action later during the Asian session when we will get a data release from the Reserve Bank of Australia.
The Australian Dollar is relatively weak, but I think it is significant that the support level at 0.6746 continues to hold.
I see the best approach towards trading this pair today as likely to be fading a spike to a key level if it reverses there on short-term time frames, following the RBA release. I have no directional bias on this currency pair today.
There is nothing of high importance due today concerning the USD. Regarding the AUD, there will be a release of the RBA’s Monetary Policy Meeting Minutes at 2:30am London time.