AUDUSD: Price recovers strongly from 10-year low
Yesterday’s signals were not triggered, as there was no bearish price action when 0.6745 was reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Thursday until 5pm Tokyo time Friday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6829 or 0.6868.
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 0.6747.
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 I would take a bearish bias later if we had gotten a firm bearish reversal at 0.6745 / 0.6750. It would have been ideal if the price had touched 0.6750 as well as 0.6745. This area looked extremely likely to be the day’s pivotal point.
This was a good call as the price was the pivotal point of the day: once it was broken the price kept on rising.
We have had a strong bullish recovery from a 10-year low price. The longer-term odds are still with the bearish trend, but there is a “fat tail” opportunity here of a long-term buy as this could be another multi-month or even multi-year low which we just made.
I would take a bullish bias today if the price retraces to 0.6747 and makes a firm bullish bounce there.
If the price turns bearish and breaks back below 0.6747, that would be a significant and very bearish sign.
There is nothing of high importance due today concerning the USD. Regarding the AUD, the Governor of the RBA will be testifying before Parliament at 12:30am London time and the RBA will be releasing its Monetary Policy Statement at 2:30am.