AUDUSD: Bearish, but pivotal point at 0.6753
Last Thursday’s signals were not triggered as there was no bearish price action when the price reached 0.6800.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Monday until 5pm Tokyo time Tuesday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6782 or 0.6809.
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 Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6753 or 0.6740.
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 the picture had become more bearish, and it seemed that the round number and key resistance level at 0.6800 would be the day’s pivotal point. I was off by a few pips as the high was made at 0.6809.
The picture is still bearish, with the AUD and NZD generally very weak (especially the AUD). I would be generally bearish but there is a big psychological level confluent with support not far below the current price, at 0.6750 / 0.6753, so bears should watch out for that level. I see an extra chance of a bullish reversal in this area as the NZD/USD is in a similar situation with support at a major psychological level at 0.6250. I would be prepared to take a bearish bias following another bearish failure to break above 0.6782, but only to 0.6753.
There is nothing of high importance due today concerning either the USD or the AUD.