AUDUSD: Consolidating between 0.6927 and 0.6877
Yesterday’s signals were not triggered, as none of the key levels given were ever reached.
Today’s AUD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Ideas
⦁ Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6906, 0.6927, 0.6940, or 0.6955.
⦁ 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
⦁ Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6877, 0.6855, or 0.6845.
⦁ 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 I’d be careful of taking any short trades around 0.6927 until the price cooled off over several hours. However, it is a long-term pivotal area, so we could well see a big bearish turn here.
It seems I was overly cautious as the price turned bearish at 0.6927 rapidly. We now have an obvious consolidation pattern between 0.6927 and 0.6877. Additionally, we can draw a new lower resistance level at 0.6906, but it looks weak so don’t put much weight on it.
As it is likely to be a quiet day today in the market, the best approach would be to trade any bounce rejecting the levels at either 0.6877 or 0.6927.
I take no directional bias on this currency pair today.
There is nothing of high importance due today concerning either the AUD or the USD.