AUDUSD: Ranging and technically unpredictable
Yesterday’s signals were not triggered, as none of the key levels have been reached yet.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Ideas
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 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 yesterday that the consolidation was continuing, we were seeing little price movement. However, there was a more bearish development with the establishment of a bearish trend line connecting the highs of the last 3 weeks.
Neither key level was reached, and the picture is complex technically as the price is within both a narrowing triangle and a bearish price channel at the same time. For this reason, I have no confidence in any breakout which might happen soon, so I would avoid trading this currency pair today. The best that can be said is that the NZD remains weaker than the AUD, so that tells us something at least.
There is nothing of high importance due today concerning the AUD. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.