AUDUSD: Consolidation continues
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade Ideas
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6800 or 0.6829.
- Put 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.
Long Trade Idea
- Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6746.
- Put 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.
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 Australian Dollar was relatively weak, but I thought that it was significant that the support level at 0.6746 continued to hold.
I saw the best approach as likely to be fading a spike to a key level if it reversed there on short-term time frames, following the RBA release. I had no directional bias.
This was an OK call, at least enough to stay out of trouble.
The consolidation continues, we are seeing little price movement. However, there has been a more bearish development with the establishment of a bearish trend line connecting the highs of the last 3 weeks.
I think that a sustained break below 0.6746 would be a significant bearish sign and I would take a bearish bias on this pair if it happens later. But otherwise, this pair looks a little dangerous to trade. Perhaps a short from a spike to 0.6800 could be a good short entry before that happens.
There is nothing of high importance due today concerning either the AUD or the USD.