AUDUSD: Consolidating below 0.6861
Yesterday’s signals were not triggered, as none of the key levels were 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 Idea
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6861.
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 0.6817 or 0.6803.
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 the level at 0.6862 had probably flipped to become resistant, but we had no real long or medium-term trend in this currency pair. This was a good call as this level held and the price went nowhere over the past 24 hours.
It is likely that the price here will do little until the Asian trading session when we will get some Australian data plus input from the Bank of Japan which tends to affect the Australian Dollar if it moves the Japanese Yen. So, the price is likely to continue to consolidate over the New York session, making a short from 0.6861 a bit of gamble but also attractive as this level seems to be getting very well-established.
I have no directional bias on this pair today, both nearby support and resistance levels look like attractive places at which to trade reversals.
Concerning the AUD, there will be releases of Unemployment Rate and Employment Change data at 12:30am London time. Regarding the USD, there is nothing of high importance due today.