AUDUSD: Evenly balanced
Yesterday’s signals were not triggered, as the bullish price action took place between the support levels at 0.6877 and 0.6855.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered 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 0.6927, 0.6940, or 0.6955.
⦁ 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 0.6885 or 0.6855.
⦁ 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 as it was likely to be a quiet day in the market, the best approach would be to trade any bounce rejecting the levels at either 0.6877 or 0.6927. I took no directional bias on this currency pair today.
This was the right approach as the price has continued to consolidate in wide swings, but unfortunately the bottom was a bit lower than 0.6877 so wasn’t exploited.
There is no change to the technical picture, we still see wide swings within a range from 0.6927 and 0.6855, so I would be looking to fade reversals at either of these extreme levels. However, watch out for the RBA’s Monetary Policy Statement which could produce a break of this range if it contains any surprises. More likely, it will produce a spike in the price to one of the extremes, giving a trading opportunity, so just after the release is likely to give the best time for a trade entry.
I again have no directional bias on this currency pair.
Regarding the AUD, there will be a release of the RBA’s Monetary Policy Statement at 12:30am London time. There is nothing of high importance due today concerning the USD.