AUDUSD: Long-term low at 0.6827?
Yesterday’s signals were not triggered, as there was no bullish price action at 0.6857.
Today’s AUD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time Wednesday and 5pm Tokyo time Thursday.
Long Trade Idea
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6827.
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 Idea
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.6857.
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 focus would now shift away from the AUD and towards the USD as there were some major data releases concerning that currency which could move in the price in either direction, in an unpredictable way.
As it turned out, the data releases boosted the U.S. Dollar, pushing the price down to new lows in line with its medium to long-term bearish trend.
However, the price has rejected quickly the multi-month low just above 0.6827 which could become a medium or long-term bottom.
Much will now probably depend upon how the price reacts if and when it reached the nearest resistance level at 0.6857 – this is likely to be today’s pivotal point.
I have no directional bias on this currency pair today.
Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time. Concerning the AUD, there will be a release of Retail Sales data at 2:30am.