AUDUSD: More bearish
Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.6834.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade Ideas
⦁ Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6862, 0.6885, or 0.6927.
⦁ 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 Ideas
⦁ Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6834, 0.6809, 0.6769, or 0.6754.
⦁ 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 this pair technically was now within a range stretching from 0.6809 to 0.6927 and reversal trades at either extreme level were likely to be fruitful, so I would be looking to trade this range.
This was enough to keep out of trouble.
We have no long-term trend in this pair but arguably now there is a medium-term bearish trend. Therefore, I see a break below 0.6833 and perhaps a couple of hours consecutive closes below that level as likely to be a good sign that the price will move lower, to at least 0.6809.
There is nothing of high importance due today concerning the USD. Regarding the AUD, there will be a release of Wage Price Index data at 12:30am London time.